4.6M SF of warehouses are under construction in Houston
Date: Monday, January 8, 2018
Industrial construction is making a comeback in Houston, thanks to the rise of e-commerce, according to a new report.
After six quarters of declining construction volume, Houston saw 12 big-box warehouses and distribution centers built or break ground in 2017. That's a 20 percent increase from last year and a 140 percent increase from 2015, according to a new report from JLL.
Developers are currently under construction on 4.6 million square feet of industrial projects across Houston, the commercial real estate firm said.
Two of the projects that broke ground in the fourth quarter span a half-million square feet or more. Oakmont Group is building a 674,000-square-foot speculative distribution center in Katy, and Vinmar International has commissioned a 500,000 square foot building near the Port of Houston.
E-commerce is driving much of the demand for Houston industrial construction. Half of the 3.4 million square feet of industrial real estate that was leased in the fourth quarter were for consumer goods and logistics companies, according to JLL.
"Changes in supply chain planning are beginning to put Houston on the radar for regional distribution facilities and fulfillment centers, driving demand for larger industrial buildings," JLL stated in its report. "As tenants remain confident and developers disciplined, the Houston market is poised for another strong year in 2018."
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