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It’s All About Big Industrial Development

Tenant requirements for big-box distribution space continue to strengthen the industrial market and there is a lot of opportunity for developers who are able to secure land and deliver quality product.

Brookhollow Business Park Two industrial buildings in Brookhollow West Business Park have sold (credit: Professional Aerial Photography).

HOUSTON—As of first quarter, it’s all about development in the industrial market. According to JLL Houston, there is approximately 6.7 million square feet currently under construction. The top five largest industrial construction projects are greater than 500,000 square feet, in fact, they total more than 2.5 million square feet. This includes a mix of build-to-suit and speculative developments.

Speculative construction made up about 70% of new development in the last two quarters. In 2016 and early 2017, it accounted for only 45% of new construction. The construction pipeline is expected to continue to grow, thanks to sub-5% vacancy, the JLL report says.

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Lisa Brown

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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