Record-high net absorption, leasing activity and sales price increases follow WTI oil price recovery in 2021
With demand driven largely by e-commerce retailers, third-party logistics providers and materials distributors, net absorption totaled 8.9 million square feet (msf) in the Houston industrial market during the fourth quarter of 2021. Over the past 12 months, net absorption exceeded 25.0 msf which is a record for the city. This positive momentum has led to tight conditions for tenants looking for space, with vacancy now averaging 7.3%. Industrial property sales volume totaled $2.0 billion during 2021 with an average price per square foot of $90, which reflects a 6.1% increase from the previous year.