Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Throughout this year, the commercial real estate community has been talking about Houston’s counter-cyclical economy. While those reports have been largely true, the latest published report on the northwest’s big-box distribution market shows that the “dog days of summer” are here.

In a quarterly “Big-Box Report,” Billy Gold, first vice president and Jeff Everist, vice president of CB Richard Ellis Inc., say, “Decision makers are out of pocket and the phones aren’t ringing.” Although there is some softness in the market, Gold isn’t down on the big-box market. He tells GlobeSt.com that in a market where the average cycle is 12 months to 24 months, a quarterly snapshot doesn’t mean the market is glutted or turmoil looms on the horizon.

Gold feels the 2.7 million sf under construction will help Houston become a more heavy-hitting distribution market like Dallas or Chicago. Whereas the Houston industrial market previously was unable to offer contiguous spaces in excess of 200,000 sf to tenants like logistics companies, he says more product is coming on line with large floor plates and state-of-the-art amenities such as super-flat floors, 30-foot clear heights, extra-wide truck aprons and ESFR sprinkler systems.

The northwest’s distribution market, he says, also is delivering more varied product such as tech-flex space. “Developers are trying to diversify their product types,” he notes. Ultimately, Gold sees the current big-box arena as one that offers great opportunity for users. Whether a user is interested in a certain location, product type or specific amount of square footage, the Houston market is gearing up to meet the demand. Gold warns, however, that the big-box sector might be threatened should the national economy not jumpstart itself in the last quarter of this year or early 2002, particularly since the northwest submarket relies heavily on the performance of Compaq and consumer spending.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Fall 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.