HOUSTON—In addition to its devastation on Greater Houston, Harvey's impact was national in scope. On August 30, more than a quarter of the nation's refining capacity (about 5 million barrels per day) was offline because of Harvey. Port Houston, the largest US port in foreign tonnage and home to the nation's largest petrochemical complex, closed for four days after the hurricane and reopened on September 1. Barbours Cut and Bayport Container Terminals handled 5,000 gate transactions, and vessel activity and gate operations continued seamlessly through that weekend. Since then, container vessels have been serviced at Barbours Cut and Bayport terminals, handling thousands of additional gate transactions, according to NAI Partners.

Most refineries along the Texas Gulf Coast returned to pre-storm fuel-making rates shortly thereafter. Retail gasoline prices averaged $2.68 per gallon on September 4, 28 cents per gallon higher than prices prior to the storm. Supply disruptions and refinery outages caused by Hurricane Harvey continue to affect gasoline supply and prices, particularly along the East Coast and the Gulf Coast, where gasoline prices reached 40 cents higher per gallon in some areas. Overall, national consumers will see an increase in gas prices of about 8 to 10 cents for the next several months.

In the air, Bush, Hobby and Ellington airports all remained open for humanitarian, recovery and military flights throughout the duration of emergency operations for Hurricane Harvey. All major airlines ramped back up to standard schedules less than two weeks after the storm. Jet fuel prices jumped as refineries in the region affected by the hurricane shut down, but prices should decline as Houston recovers.

On the ground, Houston is a major distribution hub because of its massive seaport and strategic location along well-established supply networks. Interstates 10, 69 and 45 are among the busiest highways in the US and ultimately connect Los Angeles to Jacksonville, Houston to Port Huron, and Houston to Dallas. Flooding and other unforeseen hazards caused disruptions to not only regional, but also global supply chains. Re-routing inefficiencies cost approximately $53 million daily but were short-lived as water and other obstructions were cleared from Houston highways, according to CBRE.

New industrial supply delivered during 2017 totals 5.7 million square feet, with another 5.7 million under construction. Year-to-date net absorption stands at 2.7 million square feet, nudging vacancy down to 5.7%, says NAI Partners. Supply continues to stay in front of demand, as it has for the last several years.

RCA data reports year-to-date industrial sales volume in the Houston area totaling $984 million, resulting in a year-over-year change of 127%. The buyer composition is made up of 36% private, 38% institutional, 12% public listed/REITs and 10% cross-border, GlobeSt.com learns. A recent example of confidence in the local market is the acquisition by Colony Capital REIT of Bayou Bend Business Park, a two-property 382,505-square-foot warehouse/distribution park at 8520 S. Sam Houston Pkwy. W. from Thackeray Partners.

Instant Insights /

Industrial Bounces Back After Harvey

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