Spring 2017 Houston Industrial Real Estate Property UpdatePosted
Happy New Year! I hope all is going well for you over these first months of the year! There is some interesting stuff going on now (actually just recently) in the Houston area marketplace for industrial properties:
It seems there is considerably more optimism on the part of decision makers of operating companies about the marketplace here in Houston. The most notable evidence of this is:
- Companies which heretofore had put their property on the market for sale or lease, have made the decision to take the property back OFF the market and re-occupy that portion which was considered under-used over the past several years.
- There seems to be more competition on the part of user companies for attractive buildings which are either for sale and for lease. An example: I have been searching for a Client of mine for a particularly difficult set of criteria for a property and now TWICE, we have settled on a property which would work for them, only to find that there were multiple offers coming in on the property from various sources …. and we ended up not being able to buy the properties. We are still in the hunt …..
Certainly the energy industries (and those “downstream” from the operating companies in that field) are experiencing a rejuvenation of activity and everyone’s hope is that this is a “trend”. Of course, the continuing of this is extremely difficult to predict and that is the challenge. Many of my Clients are generally experiencing recent increased orders for business and this will drive the marketplace demand for all industrial properties, if it continues.
I personally also seem to be busier with a variety of assignments too. Interestingly the TYPE of assignments are probably the most unusual I have had over past years …. but, I guess that’s why I am here. I am totally Client requirement driven, on the demand side … and I am here to do whatever they need me to do. There have been out-of-town assignments as well as non-industrial (“industrial” is my speciality) projects too. It continues to be fun though, with this new “variety” … and it certainly keeps me on my toes!
That’s really about all the NEW news. Asking sales prices and lease rates for industrial buildings seem to be holding pretty steady. There is, however, a LARGE number of land sites for sale out there right now so it is a good time for an industrial land buyer to be in the market, almost in any part of the Houston metropolitan area. A Client of mine recently asked me to find for them a (heretofore VERY difficult to find) site in the Ship Channel area which is already “stabilized” and suitable for heavy equipment storage … and for LEASE. I was able to present no less than 10 alternatives to my Client, which surprised even me!
So, bottom line for now is: as always, it is an “interesting” market for industrial properties in Houston. I guess it always has been!
Please stay tuned as things happen. If I can help you with any project you are contemplating, please contact me.