The second quarter of 2020 marked the first full quarter in which the industrial market faced pressure from COVID-19, a national recession and yet another energy downturn.

The inherently diversified nature of the tenant base in industrial real estate has helped lessen the blow to the Houston industrial market when compared to other asset classes as the current economic and social conditions are obstacles for some users and opportunity for others. In fact, VGXI, Inc., a biopharmaceutical manufacturer that was selected to produce a coranvirus vaccine, signed the largest lease in the second quarter, committing to 240,000 square feet (sf) at Deison Technology Park. Other large notable leases include China Manufacturers Alliance which leased 183,000 sf in the Southeast submarket, A&R Logistics with a 133,000 sf lease in Southeast Houston and NACC Disaster Service which leased 114, 000 sf in the north submarket.

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