Warehouse & Industrial Building Brokerage & Leasing
Across the nation, demand for consumer goods is strong. E-commerce is the driving force behind this trend. Consequently, many retailers now favor online retail over storefronts. This has produced a greater demand for warehouse space. As a result, Houston’s warehouse market has experienced many consecutive years of growth. This includes both traditional industrial and office-flex space.
This shift towards e-commerce has increased retailers’ need for warehouse space. As a result, several major retailers have shopped for a warehouse for rent Houston. But why Houston? Finding a warehouse for rent Houston has numerous benefits:
- Houston is a transportation hub and the intersection of several major interstates and highways.
- The Port of Houston is one of the world’s biggest and busiest shipping ports.
- Houston is a major shipping hub for UPS and FedEx.
- Houston’s cost-of-living is lower. Because a dollar goes further, the cost of doing business is also lower.
Houston Warehouses for Rent
As stated above, Houston is a transportation and shipping hub. Houston warehouses for rent let companies utilize these existing logistical networks. Therefore, demand in Houston’s industrial and warehouse market remains steady.
Throughout Houston, the average industrial vacancy rate hovers around 5.5%. Houston’s top industrial markets are the Northwest, Southeast, and North. These markets make up the bulk of leasing activity and construction.
Houston Warehouse Development
In contrast to Houston’s other commercial real estate sectors, industrial development has stayed strong. Not only that, but the sector continues to grow. In Q1 2018, 3.1 million SF of new industrial space was completed. In Q2 2018, another 1.6 million SF of new industrial space was completed.
Those new additions increased Houston’s industrial square footage to 562 million SF. 61% of that square footage is warehouse space. Additionally, as of Q3 2018, over 12.3 million SF of industrial space was under construction. The majority of that space is intended for distribution and logistics. If you are in the market for a warehouse for rent Houston, let CXRE help.
Investing in Houston Warehouses & Industrial Buildings
There are several benefits to renting Houston warehouses. Firstly, Houston is major a transportation hub. Also, Houston has one of the world’s largest and busiest shipping ports. In addition, Houston is a major shipping hub for UPS and FedEx. Lastly, doing business is cheaper in Houston.
Also, unlike some large metro areas, Houston can grow in almost any direction. Because of this, the metro area’s warehouse base is expandable. National retailer Best Buy has chosen to build a 550,000 SF distribution in southwest Houston. And Houston-based Conn’s HomePlus will build a 656,658 SF warehouse and distribution center in north Houston.
Houston has already expanded west. New highway construction on the Grand Parkway could bring another major expansion to the east and northeast. For clients who need commercial land to build new warehouses in these areas, CXRE’s land brokers can help.
CXRE: Warehouse Specialists
CXRE agents know Houston’s submarkets. We are familiar with the warehouses and industrial properties. Our team can assist you in renting Houston warehouses. We can help find the ideal Houston warehouses for rent to suit your needs.