MARKET WATCH HOUSTON INDUSTRIAL - Texas A&M University · MARKET WATCH HOUSTON INDUSTRIAL ART...

HOUSTON INDUSTRIAL AUGUST 2016

RECENT INDUSTRIAL LEASES

East-Southeast Far :: Packwell286,000 SF renewal and expansion at Bayport Distribution Center

Northwest Near :: Dal-Tile Distribution137,696 SF renewal and expansion at Hempstead Highway Distribution

Sugar Land :: Sanita Footwear50,000 SF renewal at Westhollow Distribution Center

RECENT INDUSTRIAL SALES

East-Southeast Far :: Ellington Trade Center 513,000 SF total, 3 building portfolio Buyer: Lincoln PropertySeller: KDC and Harbert Real Estate Fund joint venture

INDUSTRIAL LEASE STATISTICS

Source: Transwestern analysis of Costar data, includes buildings 15,000 SF RBA and greater, excluding government owned buildings

Houston Industrial Submarkets CLICK MAP BELOW TO EXPAND

610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW

Industrial Market IndicatorsSUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE

SF UNDER CONSTRUCTION

Q2 2016 NET ABSORPTION

Central Business District 30,218,438 1,699,072 5.6% 5.9% - (86,000)

East-Southeast Far 48,853,213 3,548,558 7.3% 7.4% 3,692,952 333,000

North Far 64,199,073 7,568,063 11.8% 12.1% 469,275 (7,000)

North Near 17,946,140 1,150,927 6.4% 7.0% 35,000 (92,000)

Northeast Far 1,064,701 - - - - -

Northeast Near 30,586,328 550,556 1.8% 2.1% - 163,000

Northwest Far 63,912,619 4,264,305 6.7% 6.9% 5,148,925 391,000

Northwest Near 87,688,644 3,971,356 4.5% 5.0% - (441,000)

South Far 29,857,314 738,576 2.5% 2.6% 382,800 87,000

South Near 12,154,332 316,949 2.6% 2.6% - 119,000

Southeast Near 30,734,163 509,749 1.7% 1.7% - 11,000

Southwest Far 9,682,872 775,999 8.0% 8.0% 1,409,457 (18,000)

Southwest Near 39,507,910 1,935,612 4.9% 5.1% 495,260 329,000 Sugar Land 19,193,062 1,321,666 6.9% 6.9% - 12,000

TOTAL 485,598,809 28,351,388 5.8% 6.1% 11,633,669 801,000 Source: Transwestern analysis of Costar data, includes buildings 15,000 SF RBA and greater, excluding government owned buildings

MARKET WATCH

Industrial Sales StatisticsHOUSTON MSA UNITED STATES

QUARTER TO DATE

LAST QUARTER (Q2 2016)

TRAILING 12 MONTHS


TRAILING 12 MONTHS

Volume ($ Mil) $37.0 $128.4 $1,370.6 $12,523.2 $66,054.3

No. Of Properties 2 16 126 1,233 6,570

Total SF 575,074 2,062,444 18,747,696 157,903,412 934,334,435

Average Price/SF N/A $58 $78 $80 $77

Average Cap Rate (Yield)

N/A 8.0% 7.7% 6.7% 6.8%

Source: Real Capital Analytics

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116

Q216

Overall Vacancy Rates Asking Rental Rates (NNN)

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

$6.75

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

MARKET WATCH HOUSTON INDUSTRIAL MARKET AUGUST 2016

HOUSTON INDUSTRIAL MARKET WATCHAUGUST 2016

45

45

1010

290

59

90

288

99

249

8

35

6

2

2

2

3

2

2

2

1

1

1

1

1

1

1

Southeast Near

East-Southeast Far

1

2

SE

Houston CBD1 Northeast Near

Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land

Houston | INDUSTRIAL SUBMARKETS

CENTR AL

1. Houston CBD

SOUTHWEST

1. Southwest Near2. Southwest Far3. Sugar Land

SOUTHEAST

1. Southeast Near2. East-Southeast Far

SOUTH

1. South Near2. South Far

NORTHWEST

1. Northwest Near2. Northwest Far

NORTH

1. North Near2. North Far

NORTHEAST

1. Northeast Near2. Northeast Far

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.


SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO

DETROIT GREENWICHNEW YORK

NEW JERSEY

BALTIMORENORTHERNVIRGINIA

BETHESDAWASHINGTON DC

DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA

FORT LAUDERDALEORLANDO

MIAMI-DADE

SANFRANCISCO

PHOENIXORANGE COUNTY

SAN DIEGO

BOSTON

SILICONVALLEY

TRANSWESTERNLOCATIONS

HOUSTON INDUSTRIAL TEAM

Brian GammillManaging Director [email protected]

METHODOLOGY

The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources.

T 713.270.7700 F 713.270.6285www.transwestern.net/houston

1900 West Loop South, Suite 1300Houston, Texas 77027

ABOUT TR ANSWESTERN

Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.

Transwestern was founded in Houston, Texas in 1978, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern’s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 38 years.

Darryl NoonSenior Vice [email protected]

Jude FilipponeVice [email protected]

Micheal PalmerSenior Vice President - Tenant [email protected]

Michael SnodgrassManaging Director - Structured [email protected]

Jan SparksManaging Director - Structured [email protected]

Kevin RobertsPresident, [email protected]

Carter [email protected]

CONTACT

Rachel AndraeResearch [email protected]

mailto:brian.gammill%40transwestern.com?subject=

mailto:darryl.noon%40transwestern.com?subject=

mailto:jude.filippone%40transwestern.com?subject=

mailto:micheal.palmer%40transwestern.com?subject=

mailto:michael.snodgrass%40transwestern.com?subject=

mailto:jan.sparks%40transwestern.com?subject=

mailto:Kevin.Roberts%40transwestern.com?subject=

mailto:carter.thurmond%40transwestern.com?subject=

mailto:Rachel.Andrae%40transwestern.com?subject=

HOUSTON INDUSTRIAL MAY 2016


East-Southeast Far :: American Packing & Crafting140,782 SF renewal at 404 N Witter

South Near :: CRC Warehousing78,151 SF new lease at 6100 Griggs


Northwest Near :: West Loop I & II 158,652 SF total, two building portfolio Buyer: Western GeneralSeller: EastGroup Properties

Northwest Near :: America Plaza 121,400 SF warehouse building Buyer: Travelers InsuranceSeller: EastGroup Properties




610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW






North Far 62,959,877 6,321,334 10.0% 10.2% 1,456,625 387,000

North Near 17,946,140 1,059,826 5.9% 6.2% 35,000 178,000

Northeast Far 1,064,701 - - - - -

Northeast Near 30,187,678 314,874 1.0% 1.4% - 76,000

Northwest Far 63,757,329 4,499,966 7.1% 7.2% 4,913,840 829,000

Northwest Near 87,651,008 3,493,449 4.0% 4.4% - (52,000)

South Far 29,830,794 799,372 2.7% 2.7% 210,000 (59,000)

South Near 12,154,332 435,568 3.6% 3.6% - (42,000)

Southeast Near 30,734,163 521,052 1.7% 1.7% - 2,000

Southwest Far 9,682,872 758,133 7.8% 7.9% 861,407 1,000

Southwest Near 39,204,575 1,961,222 5.0% 5.0% 730,295 43,000 Sugar Land 19,067,062 1,207,921 6.3% 6.5% 106,000 541,000

TOTAL 482,573,896 26,127,896 5.4% 5.6% 11,562,162 2,121,000 Source: Transwestern analysis of Costar data, includes buildings 15,000 SF RBA and greater, excluding government owned buildings

MARKET WATCH


QUARTER TO DATE


TRAILING 12 MONTHS


TRAILING 12 MONTHS

Volume ($ Mil) $51.6 $186.8 $1,511.5 $12,885.1 $69,706.9

No. Of Properties 4 20 143 1,252 6,913

Total SF 847,823 2,038,587 20,405,987 143,545,738 1,005,069,739

Average Price/SF $50 $142 $84 $80 $74


N/A N/A 7.8% 7.5% 6.9%


Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116


$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

$6.75

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

MARKET WATCH HOUSTON INDUSTRIAL MARKET MAY 2016

HOUSTON INDUSTRIAL MARKET WATCHMAY 2016

45

45

1010

290

59

90

288

99

249

8

35

6

2

2

2

3

2

2

2

1

1

1

1

1

1

1

Southeast Near

East-Southeast Far

1

2

SE


Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land


CENTR AL

1. Houston CBD

SOUTHWEST


SOUTHEAST


SOUTH


NORTHWEST


NORTH


NORTHEAST



HOUSTON INDUSTRIAL MARKET WATCHMAY 2016

SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO


NEW JERSEY



DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA


MIAMI-DADE

SANFRANCISCO


SAN DIEGO

BOSTON

SILICONVALLEY




METHODOLOGY


CONTACT

Rachel AlexanderDirector of Market [email protected]



ABOUT TR ANSWESTERN









Carter [email protected]

mailto:brian.gammill%40transwestern.com?subject=

mailto:Rachel.Alexander%40transwestern.com?subject=

mailto:darryl.noon%40transwestern.com?subject=

mailto:jude.filippone%40transwestern.com?subject=

mailto:micheal.palmer%40transwestern.com?subject=

mailto:michael.snodgrass%40transwestern.com?subject=

mailto:jan.sparks%40transwestern.com?subject=

mailto:Kevin.Roberts%40transwestern.com?subject=

mailto:carter.thurmond%40transwestern.com?subject=

HOUSTON INDUSTRIAL AUGUST 2015


East-Southeast Far :: Modern Polymer Products 300,000 SF renewal at 3041-3053 SH 225

North Far :: General Cable 51,750 SF renewal at Prologis Business Park

Northwest Near :: Custom Form Transportation27,000 SF renewal at 1217 N Post Oak Rd


Southwest Near :: 1705 Oliver St 750,000 SF manufacturing propertyBuyer: Gulf Coast Commercial GroupSeller: Tarkett, Inc




610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW





East-Southeast Far 46,484,028 2,498,088 5.4% 5.4% 905,327 1,067,000

North Far 60,842,825 4,994,595 8.2% 8.4% 1,739,219 533,000

North Near 17,720,540 1,076,846 6.1% 6.3% 75,600 (25,000)

Northeast Far 1,064,701 - 0.0% 0.0% - -

Northeast Near 30,081,678 339,122 1.1% 1.1% 70,000 27,000

Northwest Far 60,994,750 3,297,075 5.4% 5.4% 6,048,908 997,000

Northwest Near 87,095,190 2,650,829 3.0% 3.3% 513,818 236,000

South Far 29,810,794 844,771 2.8% 2.9% - 245,000

South Near 12,154,332 386,167 3.2% 3.2% - 43,000

Southeast Near 30,734,163 501,599 1.6% 1.7% - (74,000)

Southwest Far 9,534,615 623,160 6.5% 6.6% 596,750 259,000

Southwest Near 38,696,794 1,336,827 3.5% 3.5% 423,796 47,000 Sugar Land 17,976,559 654,833 3.6% 3.7% 650,000 124,000


MARKET WATCH


QUARTER TO DATE


TRAILING 12 MONTHS


TRAILING 12 MONTHS

Volume ($ Mil) $98.5 $330.1 $1,436.2 $16,714.7 $63,903.6

No. Of Properties 10 36 157 1,586 6,470

Total SF 1,614,612 4,887,696 21,743,651 228,574,710 917,057,852



N/A 8.3% 7.8% 6.8% 7.0%


Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15


$5.00

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

MARKET WATCH HOUSTON INDUSTRIAL MARKET AUGUST 2015


45

45

1010

290

59

90

288

99

249

8

35

6

1111

11

11

11

11

11

22

22

22

22

22

22

33

Southeast Near

East-Southeast Far

1

2

SE


Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land


CENTR AL

1. Houston CBD

SOUTHWEST


SOUTHEAST


SOUTH


NORTHWEST


NORTH


NORTHEAST




SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO


NEW JERSEY



DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA


MIAMI-DADE

SANFRANCISCO


SAN DIEGO

BOSTON

SILICONVALLEY




Vince [email protected]

METHODOLOGY


CONTACT




ABOUT TR ANSWESTERN









HOUSTON INDUSTRIAL JUNe 2015

Recent IndustRIal leases

East-Southeast Far :: Gulf Intermodal Services 113,000 SF new lease at Underwood 2

East-Southeast Far :: Abrasive Products & Equipment 102,508 SF new lease at 3009 State Hwy 225

North Far :: Pathmark Transportation 76,234 SF new lease at 14810 North Freeway

Recent IndustRIal sales

North Far :: Beltway North Commerce Center 352,680 SFBuyer: TIAA-CREFSeller: Amstar & Davis Commercial Development joint venture



Houston Industrial Submarkets CliCk MAp Below To expAnd

610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW



1Q 2015 NET ABSORPTION

Central Business District 30,218,438 1,317,280 4.4% 4.4% - 117,000


North Far 60,086,663 4,771,019 7.9% 8.1% 1,724,943 1,272,000

North Near 17,720,540 1,052,362 5.9% 5.9% 42,600 206,000

Northeast Far 1,064,701 - 0.0% 0.0% - -

Northeast Near 30,081,678 365,789 1.2% 1.2% 20,000 39,000

Northwest Far 59,540,324 2,839,947 4.8% 4.8% 3,036,696 518,000

Northwest Near 86,918,130 2,710,124 3.1% 3.2% 668,078 (139,000)

South Far 29,606,619 885,848 3.0% 3.1% 24,175 (26,000)

South Near 12,154,332 429,128 3.5% 3.6% - 87,000

Southeast Near 30,734,163 428,075 1.4% 1.4% - (20,000)

Southwest Far 9,135,235 482,129 5.3% 5.4% 443,630 47,000

Southwest Near 38,696,794 1,383,538 3.6% 3.6% 37,296 81,000 Sugar Land 17,976,559 778,564 4.3% 4.4% 650,000 283,000


MARkET WATCh

Industrial Sales StatisticshOUSTON MSA UNITED STATES

QUARTER TO DATE

LAST QUARTER(1Q15)

TRAILINg 12 MONThS

LAST QUARTER(1Q15)

TRAILINg 12 MONThS

Volume ($ Mil) $326.6 $513.4 $1,325.0 $21,370.2 $63,765.0

No. Of Properties 28 35 147 1,696 6,431

Total SF 3,935,811 6,461,856 20,258,403 252,442,226 863,628,324



N/A N/A 7.7% 7.0% 7.1%


1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15


$5.00

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

MARKET WATCH HOUSTON INDUSTRIAL MARKET JUNE 2015

HOUSTON INDUSTRIAL MARKET WATCHJUNe 2015

45

45

1010

290

59

90

288

99

249

8

35

6

1111

11

11

11

11

11

22

22

22

22

22

22

33

Southeast Near

East-Southeast Far

1

2

SE


Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land


centR al

1. Houston CBD

southwest


southeast


south


noRthwest


noRth


noRtheast



HOUSTON INDUSTRIAL MARKET WATCHJUNe 2015

SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO


NEW JERSEY



DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA


MIAMI-DADE

SANFRANCISCO


SAN DIEGO

BOSTON

SILICONVALLEY


houston IndustRIal teaM



METhODOLOgy


CONTACT


t 713.270.7700 F 713.270.6285www.transwestern.net/houston


aBout tR answesteRn








HOUSTON INDUSTRIAL MARcH 2015

Recent IndustRIal leases

Sugar Land :: Professional Packing Systems 171,000 SF new lease at Sugar Land Interchange Distribution Center

East-Southeast Far :: Eugene B. Smith & Co. 120,000 SF new lease at Bay Area Business Park

Northwest Near :: Wilsonart 68,210 SF renewal and expansion at Pine Forest Business Park

Recent IndustRIal sales

East-Southeast Far :: Bayport North Distribution Center565,000 SF warehouse/distribution propertyBuyer: Industrial Property TrustSeller: Carson Cos



4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14


$5.00

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%


610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW



2014 NET ABSORPTION


East-Southeast Far 45,245,610 2,759,321 6.1% 6.1% 1,226,938 1,815,000

North Far 58,941,575 4,898,511 8.3% 8.5% 2,078,754 1,307,000

North Near 17,624,441 1,162,762 6.6% 6.7% 42,600 594,000

Northeast Far 1,064,701 - 0.0% 0.0% - 4,000

Northeast Near 30,081,678 405,700 1.3% 1.3% 20,000 225,000

Northwest Far 58,606,937 2,424,623 4.1% 4.2% 3,305,593 1,651,000

Northwest Near 86,918,130 2,504,827 2.9% 3.0% 628,478 1,288,000

South Far 29,369,278 622,379 2.1% 2.2% 219,841 994,000

South Near 12,154,332 515,664 4.2% 4.2% - 268,000

Southeast Near 30,734,163 407,652 1.3% 1.3% - 489,000

Southwest Far 9,095,235 489,142 5.4% 5.4% 406,630 43,000



MARkET WATCh


QUARTER TO DATE

LAST QUARTER (4Q14)

TRAILINg 12 MONThS

LAST QUARTER (4Q14)

TRAILINg 12 MONThS

Volume ($ Mil) $140.6 $356.9 $1,051.6 $16,821.4 $52,687.4

No. Of Properties 10 49 134 1,963 5,994

Total SF 1,727,017 6,436,064 17,345,302 250,440,302 773,664,522


Average Cap Rate (Yield) N/A N/A 7.5% 7.0% 7.2%


MARKET WATCH HOUSTON INDUSTRIAL MARKET MARcH 2015

HOUSTON INDUSTRIAL MARKET WATCHMARcH 2015

45

45

1010

290

59

90

288

99

249

8

35

6

1111

11

11

11

11

11

22

22

22

22

22

22

33

Southeast Near

East-Southeast Far

1

2

SE


Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land


centR al

1. Houston CBD

southwest


southeast


south


noRthwest


noRth


noRtheast



HOUSTON INDUSTRIAL MARKET WATCHMARcH 2015

SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO


NEW JERSEY



DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA


MIAMI-DADE

SANFRANCISCO


SAN DIEGO

BOSTON

SILICONVALLEY


houston IndustRIal teaM



METhODOLOgy


CONTACT




aBout tR answesteRn








HOUSTON INDUSTRIAL FebRUARy 2015

recent IndustrIal leases

Northwest Near :: Banta 201,600 SF renewal at West by Northwest Business Park

Northeast Near :: FXI, Inc. 56,700 SF renewal at Eastwood 4

North Near :: SRS Distribution 30,000 SF new lease at Udelson Industrial Park

recent IndustrIal sales

Southwest Near :: Freeport SW Business Park145,120 SF manufacturing propertyBuyer: Satake USA, Inc.Seller: Sherman Family Trust



4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14


$5.00

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%


610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW



2014 NET ABSORPTION


East-Southeast Far 45,245,610 2,759,321 6.1% 6.1% 1,226,938 1,815,000

North Far 58,941,575 4,898,511 8.3% 8.5% 2,078,754 1,307,000

North Near 17,624,441 1,162,762 6.6% 6.7% 42,600 594,000

Northeast Far 1,064,701 - 0.0% 0.0% - 4,000

Northeast Near 30,081,678 405,700 1.3% 1.3% 20,000 225,000

Northwest Far 58,606,937 2,424,623 4.1% 4.2% 3,305,593 1,651,000

Northwest Near 86,918,130 2,504,827 2.9% 3.0% 628,478 1,288,000

South Far 29,369,278 622,379 2.1% 2.2% 219,841 994,000

South Near 12,154,332 515,664 4.2% 4.2% - 268,000

Southeast Near 30,734,163 407,652 1.3% 1.3% - 489,000

Southwest Far 9,095,235 489,142 5.4% 5.4% 406,630 43,000



MARkET WATCh


QUARTER TO DATE

LAST QUARTER (4Q14)

TRAILINg 12 MONThS

LAST QUARTER (4Q14)

TRAILINg 12 MONThS

Volume ($ Mil) $22.5 $303.0 $997.7 $6,667.1 $53,864.0

No. of Properties 3 46 131 1,942 5,962

Total SF 240,472 5,575,059 16,484,297 248,628,360 781,440,971


Average Cap Rate (Yield) N/A N/A 7.5% 7.0% 7.2%


MARKET WATCH HOUSTON INDUSTRIAL MARKET FEBRUARY 2015

HOUSTON INDUSTRIAL MARKET WATCHFebRUARy 2015

45

45

1010

290

59

90

288

99

249

8

35

6

1111

11

11

11

11

11

22

22

22

22

22

22

33

Southeast Near

East-Southeast Far

1

2

SE


Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land


centr al

1. Houston CBD

southwest


southeast


south


northwest


north


northeast



HOUSTON INDUSTRIAL MARKET WATCHFebRUARy 2015

SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO


NEW JERSEY



DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA


MIAMI-DADE

SANFRANCISCO


SAN DIEGO

BOSTON

SILICONVALLEY


houston IndustrIal teaM



METhODOLOgy


CONTACT




aBout tr answestern








HOUSTON INDUSTRIAL DecembeR 2014

recent IndustrIal leases

Northeast Near :: Atlantic Clothing, Inc. 103,950 SF new lease at 8605 City Park Loop

Northwest Near :: Veritrust Corp. 87,000 SF renewal & expansion at 2000 Afton Road

North Far :: Hunting Energy Services 81,000 SF renewal at 4400 N Sam Houston Pkwy

recent IndustrIal sales

Northwest Near :: 5200 Jensen Dr171,240 SF warehouse/distribution propertyBuyer: En-Fab Holdings LLCSeller: Goodwill Industries of Houston


Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings.

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 $5.00

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%


Houston Industrial Submarkets CliCk Map below To expand

610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW



3Q2014 NET ABSORPTION

Central Business District 30,218,438 1,535,948 5.1% 5.1% 12,000

East-Southeast Far 44,778,610 3,560,387 8.0% 8.0% 117,334 757,000

North Far 58,156,827 4,274,678 7.4% 7.4% 1,662,963 (19,000)

North Near 17,504,441 1,152,938 6.6% 6.6% 120,000 31,000

Northeast Far 1,064,701 0.0% 0.0%

Northeast Near 30,061,678 523,934 1.7% 1.7% 40,000 132,000

Northwest Far 58,334,324 2,447,538 4.2% 4.2% 2,891,792 440,000

Northwest Near 86,869,130 3,136,341 3.6% 3.7% 291,000

South Far 29,349,384 647,162 2.2% 2.3% 219,841 332,000

South Near 12,154,332 567,816 4.7% 4.7% 84,000

Southeast Near 30,734,163 509,768 1.7% 1.7% 116,000

Southwest Far 9,095,235 490,648 5.4% 5.4% 26,250 (5,000)

Southwest Near 38,566,794 1,401,184 3.6% 3.6% 90,000 167,000 Sugar Land 17,945,559 1,113,461 6.2% 6.2% 31,000 (32,000)

TOTAL 464,833,616 21,361,803 4.6% 4.6% 5,199,180 2,306,000 Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings.

MARkET WATCh


QUARTER TO DATE

LAST QUARTER (3Q14)

TRAILINg 12 MONThS

LAST QUARTER (3Q14)

TRAILINg 12 MONThS

Volume ($ Mil) $114.2 $191.3 $1,032.3 $12,795.1 $52,986.4

No. of Properties 20 31 131 1,356 5,603

Total SF 2,337,038 3,020,544 17,359,364 170,396,650 782,692,919


Average Cap Rate (Yield) N/A 7.0% 7.6% 7.2% 7.3%

Source: Real Capital analytics

MARKET WATCH HOUSTON INDUSTRIAL MARKET DEcEMbER 2014

HOUSTON INDUSTRIAL MARKET WATCHDecembeR 2014

45

45

1010

290

59

90

288

99

249

8

35

6

1111

11

11

11

11

11

22

22

22

22

22

22

33

Southeast Near

East-Southeast Far

1

2

SE


Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land


centr al

1. Houston CBD

southwest


southeast


south


northwest


north


northeast



HOUSTON INDUSTRIAL MARKET WATCHDecembeR 2014

SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO


NEW JERSEY



DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA


MIAMI-DADE

SANFRANCISCO


SAN DIEGO

BOSTON

SILICONVALLEY


houston IndustrIal teaM



METhODOLOgy


CONTACT




aBout tr answestern








HOUSTON INDUSTRIAL SEPTEMBER 2014


North Far :: DB Schenker 150,000 SF at Kenswick AirFreight & LogisticsCentre

South Far :: Office Furniture Connection 125,278 SF at 13101 Almeda Rd

South Far :: Composite Advanced Technologies80,625 SF at 7441 E Orem Dr


Sugar Land :: 1601 Gillingham Ln369,364 SF warehouse/distribution propertyBuyer: Dalfen America CorpSeller: Northstar Commercial partners



2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14


$5.00

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%


610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW




Central Business District 30,218,438 1,547,614 5.1% 5.1%


North Far 57,902,825 4,128,188 7.1% 7.2% 1,432,223 784,000

North Near 17,504,441 1,184,911 6.8% 6.8% 120,000 203,000

Northeast Far 1,064,701 0.0% 0.0%

Northeast Near 30,121,918 802,879 2.7% 3.1% 39,000

Northwest Far 57,584,798 2,181,481 3.8% 3.8% 2,355,056 395,000

Northwest Near 86,853,130 3,410,458 3.9% 4.1% 16,000 185,000

South Far 29,199,557 829,102 2.8% 3.0% 309,908 359,000

South Near 12,154,332 651,363 5.4% 5.4% 50,000

Southeast Near 30,734,163 625,669 2.0% 2.2% 163,000

Southwest Far 9,095,235 486,032 5.3% 5.3% (12,000)

Southwest Near 38,566,794 1,568,033 4.1% 4.2% 90,000 (110,000)Sugar Land 17,945,559 858,296 4.8% 4.9% 31,000 (21,000)


MARKET WATCH


QUARTER TO DATE

LAST QUARTER (2Q14)

TRAILING 12 MONTHS

LAST QUARTER (2Q14)

TRAILING 12 MONTHS

Volume ($ Mil) $91.2 $247.2 $1,568.7 $12,047.6 $54,152.5

No. of Properties 14 30 123 1,312 5,600

Total SF 1,426,035 4,205,096 18,136,568 176,920,361 801,448,370


Average Cap Rate (Yield) N/A 8.2% 7.9% 7.1% 7.4%


MARKET WATCH HOUSTON INDUSTRIAL MARKET SEPTEMBER 2014

HOUSTON INDUSTRIAL MARKET WATCHSEPTEMBER 2014

45

45

1010

290

59

90

288

99

249

8

35

6

1111

11

11

11

11

11

22

22

22

22

22

22

33

Southeast Near

East-Southeast Far

1

2

SE


Northeast Far

1

2

NE

1

2

3

SW

1

2

NW

1

2

N

1

2

Northwest Near

Northwest Far

North Near

North Far

South Near

South Far

S

Southwest Near

Southwest Far

Sugar Land


CENTR AL

1. Houston CBD

SOUTHWEST


SOUTHEAST


SOUTH


NORTHWEST


NORTH


NORTHEAST



HOUSTON INDUSTRIAL MARKET WATCHSEPTEMBER 2014

SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO


NEW JERSEY



DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA


MIAMI-DADE

SANFRANCISCO


SAN DIEGO

BOSTON

SILICONVALLEY





METHODOLOGY


CONTACT




ABOUT TR ANSWESTERN








HOUSTON INDUSTRIAL JULY 2014

Recent industRial leases

Northwest Far :: Lenox International190,000 SF in DCT Northwest Crossroads Logistics Centre

North Far :: Bunzl134,230 SF in Northpark Central

Northeast Near :: RL Building Supply36,352 SF at 8615 North Loop East

Recent industRial sales

Northwest Near :: Alliance Tire Americas136,241 SF warehouse propertyBuyer: 9700 West Wingfoot LLCSeller: SSJ Investments Ltd



$5.00

$5.25

$5.50

$5.75

$6.00

$6.25

$6.50

3.0% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%


Houston Industrial Submarkets CliCk Map below To expand

610

45

1010

290

59

90

288

99

249

8

35

6

SE

N

S

NE

SW

CBD

NW




Central Business District 33,114,815 1,788,735 5.4% 5.4% (1,000)


North Far 67,296,016 3,810,961 5.7% 5.7% 1,930,744 509,000

North Near 20,504,903 1,027,007 5.0% 5.1% 471,250 250,000

Northeast Far 1,718,879 7,326 0.4% 0.4% 4,000

Northeast Near 33,692,599 882,088 2.6% 3.0% 10,560 (84,000)

Northwest Far 69,681,346 2,357,365 3.4% 3.5% 1,870,224 610,000

Northwest Near 104,056,474 3,698,774 3.6% 3.7% 499,923 265,000

South Far 38,805,099 1,084,709 2.8% 2.8% 460,232 258,000

South Near 14,669,608 788,501 5.4% 5.4% 82,000

Southeast Near 40,064,076 785,615 2.0% 2.0% 108,000

Southwest Far 13,084,353 566,875 4.3% 4.3% 26,250 59,000

Southwest Near 54,828,412 1,758,593 3.2% 3.2% 208,800 (57,000)Sugar Land 22,645,418 886,139 3.9% 4.0% 58,000 70,000


MARkET WATCh


QUARTER TO DATE

LAST QUARTER (1Q14)

TRAILINg 12 MONThS

LAST QUARTER (1Q14)

TRAILINg 12 MONThS

Volume ($ Mil) $145.2 $235.2 $1,563.8 $12,645.8 $52,686.8

No. of Properties 21 19 117 1,289 5,325

Total SF 2,188,465 3,069,438 18,680,911 176,579,643 788,996,081

Average Price/SF N/A $87 $67 $67 66

Average Cap Rate (Yield) N/A N/A N/A 7.4% 7.5%

Source: Real Capital analytics

MARKET WATCH HOUSTON INDUSTRIAL - Texas A&M University · MARKET WATCH HOUSTON INDUSTRIAL ART...

Documents

Transcript of MARKET WATCH HOUSTON INDUSTRIAL - Texas A&M University · MARKET WATCH HOUSTON INDUSTRIAL ART...