Houston Industrial Market Report | 2Q 2011
Houston’s industrial market fundamentals continue to strengthen, with 1.3M SF of positive net absorption in the second quarter pushing year-to date absorption over 2.1M SF. Houston’s industrial vacancy decreased by 30 basis points to 5.7% from 6.0% the previous quarter. The quoted citywide rental rate for industrial space decreased increased by 0.6% between quarters from $5.31 to $5.34 per SF NNN, and increased by 8.6% on a year-over-year basis from $4.88 per SF NNN. Leasing activity for the first half of 2011 reached 6.5M SF, with the majority of the leases being in the 20k to 40k square feet.