Port Houston Cargo Up 9% From Last Year
June 15, 2017
HOUSTON—Port Houston continues to thrive, handling nearly 13 million tons of cargo for the year, an increase of 9% from last year. Total container volumes have also grown by 12%, as reported by the Port Commission.
There is 4.3 million square feet in the Houston industrial construction pipeline, with about 29% available for lease, according to NAI Partners. A 500,000-square-foot build-to-suit distribution facility is being developed in Baytown, to be occupied by Vinmar International, a petrochemical marketer and distributor. Land is also being cleared for one of the Houston area’s biggest warehouses and job-growth projects so far in 2017—the 1 million-square-foot Amazon distribution center in Katy.
Leasing activity is at 7.6 million square feet year-to-date, taking place across 560 deals in the Houston metro. Kuraray America Inc. recently signed a lease at Bayport Logistics Park, a 185-acre industrial complex in Pasadena. The long-term lease is for 465,851 square feet and will occupy two buildings across 30.5 acres, both of which will be build-to-suit.
Net absorption for the overall industrial market is at 2.7 million square feet year-to-date. For full-year 2016, total net absorption was 10.3 million square feet. Direct space absorbed 11.3 million square feet, more than enough to balance the negative 1 million square feet from sublease space.
“Port-and-rail-oriented developments in the Southeast submarket are a good indicator of Houston’s diversified economy,” Leta Wauson, NAI Partners’ director of research, tells GlobeSt.com. “There are approximately 295 industrial rail-served properties in the Houston metro with the largest concentration in the Southeast submarket representing almost 13 million square feet.”