Industrial rental rates continue to trend upward with strong demand leading to record highs
Since 2020, Houston’s industrial market exhibited greater resiliency compared to other asset types, as tenant demand stayed strong among e-commerce, material distributors and third-party logistics users. Amid national and global supply chain disruptions, the Port of Houston showed signs of strengthening with trade volumes, as measured by twenty-foot equivalent units (TEUs), up 37% over the past year. The port has become a benefactor of the current situation as shipping containers rerouted to the Gulf Coast to avoid congestion on the West Coast. With high demand reflected by strong quarterly leasing activity and net absorption, developers continue to be bullish building new product to meet market demand.