Southeast Submarket Benefits from Ship Channel Manufacturing

Talhelm says activity in the southeast industrial submarket continues at a strong pace.

HOUSTON—While the Houston industrial market remained stable through the third quarter, weakness is manifesting due to the energy downturn–everywhere that is, except for southeast Houston. The second largest submarket by inventory, the Southeast continues to outperform with significant leasing activity and strong net absorption through the third quarter, according to a JLL exclusive report on the Southeast industrial market.  

“Our MSA population has expanded to more than 6 million people spread out over an area that covers almost 11,000 square miles of land,” John Talhelm, senior vice president in the industrial services group of JLL tells GlobeSt.com. “As a result, companies that provide household goods, construction materials, food and beverage, and medical supplies are expanding to their existing warehouse facilities in and around Houston. Many of the companies expanding in the Southeast submarket are also directly related to downstream product manufacturing taking place on the Houston Ship Channel. Low feedstock prices are fueling plant expansions to produce resins, lubricants, cleaning products and products for the automotive and manufacturing industries. These are typically stored in warehouses in and around the petrochemical plants for both domestic consumption and export to the world market.”