Houston’s industrial market continues to ride the wave of e-commerce and plastics industry growth…

Houston’s industrial market continues to ride the wave of e-commerce and plastics industry growth, although sluggish demand from the upstream energy sector has provided a counterbalance to prevent the local industrial market from overheating.

Houston has grown in prominence from a market reliant on energy-related industrial demand (particularly for crane-served upstream oil and gas and fabricated metals manufacturing tenants) to a true regional distribution center serving its growing population base. As of 19Q1, it ranked in the top 10 among U.S. metros in terms of trailing 12-month net absorption and inventory size. The Northwest and Southeast parts of the metro remain the strongest areas for Houston’s industrial growth, as the Northwest is located close to Houston’s growing population base and the Southeast is located near the Port of Houston.

2019 - Houston 2019 Q1 Industrial Market Report