Industrial properties are well occupied in Houston. Energy Service (Oil & Gas) companies have quickly filled available space in order to meet demands from growing oil & gas plays like the Eagle Ford Shale.
Companies Are Expanding and Relocating to Houston
Many of my clients have chosen to remain (and even expand) in Houston as a primary hub, and then open up satellites in South Texas to take advantage of the Eagle Ford Shale Play in South Texas. Given Houston is deemed as one of the energy capitals of the world, has a low cost of living and enjoys a quality labor pool, companies are oftentimes relocating to Houston. Therefore, industrial space is being absorbed at a nice clip. New development has started on 3 speculative projects for distribution space. This hasn’t happened since 2007. Also, over 2 MM SF of manufacturing space (buildings with cranes) is under development for both users and future occupiers. Overall, we know of very little speculative projects underway in any other area of the country. Notable companies expanding in Houston are National Oilwell Varco, Weatherford, and KBR. [Read more…]