Fall 2016 Houston Industrial Real Estate UpdatePosted
As most of you know, I keep a database of (hopefully) most every freestanding building available in metro Houston that is over 10,000 sf. The total now numbers over 3,600 buildings. Available today are about 220 buildings. Every so often, I sit down and update my database with all the information coming routinely to me by email, regular mail and other sources from the brokers and owners who have buildings for sale or lease in our area. Today was my day to do this and the interesting part today was:
- There were an uncommon number of updates over a period of about 2 weeks – 88 properties were updated today with the current date along with other stuff. Maybe the brokers and owners are just making sure the information is out there for prospects!
- Of those, there were 23 NEW price reductions.
- Additionally, there were 16 buildings which had been either sold or leased prior and therefore taken off the “available” list …. which were PUT BACK ON THE MARKET.
- There were 22 new buildings, not previously in my inventory, to add into the “available property” category, which has never happened before with my working with the database.
So, why am I writing this? I was surprised today … and I think this is a real “grass roots” view of what’s happening in our industrial market at this particular point in time. I think the industrial market is a view into the window into the real health of a real estate marketplace. Certainly not 100% of it, as OFFICE, RETAIL. LAND AND RESIDENTIAL have their own dynamics, but industrial tends to reflect the cycle of supply and demand of space for manufacturing and distribution businesses and I think this is important.
I read, just like you do, the predictions of what is to come in 2017 and maybe even 2018 relative to the “recovery” in our marketplace. I have to say, I’m still a little unsure of what’s out there!
There have been announcements of MONSTER transactions recently which reflect the demand for large space in certain marketplaces in our area (primarily the East side). However, demand for smaller properties, I think are still in for some time to recover.
I hope all is well with you and I hope you find this “reality check” from my day at the office interesting. If not, always just reply and say “drop me” from my mailings to you.
Michael Hill – SIOR
Michael Hill Properties
2121 Sage Rd., #390
Houston, TX 77056