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While some submarkets saw negative quarterly occupier growth, all tracked Texas markets remained in overall positive territory. Statewide, 90-day net absorption increased by almost 2.0 million sq. ft. This was due largely to Houston’s absorption growth of 2.5 million sq. ft. Additionally, about 62% of delivered construction was pre-leased. This occupied growth in inventory combined with robust leasing activity pushed down Texas industrial vacancy to 5.9%, down from 6.3% in Q4 2017 and 6.2% a year ago. Following a record quarter of new construction starts late last year and a scoring year of deliveries, industrial construction activity steadied. Dallas/Ft. Worth leads in new starts but with a smaller margin compared to previous quarters. Austin and McAllen saw quarterly growth in both new starts and total space under construction while El Paso and San Antonio just the opposite. Statewide, total space under construction was slightly above Q4 2017 and nearly 5.0 million sq. ft. higher than Q1 2017. Completions Under Construction Net Absorption Vacancy Rate Rentable Area

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Page 1: PDDVQJFS HSPXUI BMM USBDLFE 5FYBT NBSLFUT SFNBJOFE … · 8ijmf tpnf tvcnbslfut tbx ofhbujwf rvbsufsmz pddvqjfs hspxui bmm usbdlfe 5fybt nbslfut sfnbjofe jo pwfsbmm qptjujwf ufssjupsz

While some submarkets saw negative quarterly occupier growth, all tracked Texas markets remained in overall positive territory. Statewide, 90-day net absorption increased by almost 2.0 million sq. ft. This was due largely to Houston’s absorption growth of 2.5 million sq. ft. Additionally, about 62% of delivered construction was pre-leased. This occupied growth in inventory combined with robust leasing activity pushed down Texas industrial vacancy to 5.9%, down from 6.3% in Q4 2017 and 6.2% a year ago.

Following a record quarter of new construction starts late last year and a scoring year of deliveries, industrial construction activity steadied. Dallas/Ft. Worth leads in new starts but with a smaller margin compared to previous quarters. Austin and McAllen saw quarterly growth in both new starts and total space under construction while El Paso and San Antonio just the opposite. Statewide, total space under construction was slightly above Q4 2017 and nearly 5.0 million sq. ft. higher than Q1 2017.

CompletionsUnder ConstructionNet AbsorptionVacancy RateRentable Area

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Robert C. Kramp

Director of Research & Analysis,

Texas-Oklahoma Division

[email protected]

E. Michelle Miller

Research Operations Manager,

Texas-Oklahoma Division

[email protected]

John D. McWilliams

Research Analyst, Houston

[email protected]

Miller Hamrick

Research Analyst, DFW

[email protected]

Luke Goebel

Research Analyst, Austin

[email protected]

Elisabeth Downs

Research Coordinator, El Paso, McAllen

[email protected]

To learn more about CBRE Research,

or to access additional research

reports, please visit the Global

Research Gateway at

www.cbre.com/researchgateway.

Austin500 W 2nd, Suite 1700Austin, TX 78701

Dallas2100 McKinney, Suite 700Dallas, TX 75201

El Paso211 N. Kansas, Suite 2100El Paso, TX 79901

Houston2800 Post Oak, Suite 2300Houston, TX 77056

McAllen200 S. 10th St., Suite 1209McAllen, TX 78501

San Antonio200 Concord Plaza, Suite 800San Antonio, TX 78216

Texas totals, including vacancy, represent aggregate data from Austin, Dallas/Ft. Worth, El Paso, Houston, McAllen, and San Antonio markets. Austin and San Antonio data exclude owner occupied properties, while El Paso and McAllen data exclude Flex space. CoStar supplemented data are used for the latter markets to calculate a flex space asking rate and vacancy rate. Austin and San Antonio industrial data underwent an audit during Q4 2016 and Q1 2017. Houston and El Paso avg. asking rate formula was adjusted in Q4 2016 and Q3 2017, respectively, to better reflect the weighted averages. As result, figures were updated based on the most recent available information.