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"Where Houston really historically hasn’t been a big-box market, it’s starting to see a lot more demand for big-box space, and developers are responding to that with the type of product that they’re building. We’re even seeing some build-to-suit activity with buildings that are a million square feet or more. And, we’ve got our first million square foot [speculative] project happening right now."
- Rives Nolen, Senior Vice President of Investments in the Central Region
Rives and fellow speakers discussed a range of topics, including the evolution of supply chains as e-commerce sales soar and the impact these changes are having on the Houston industrial real estate market:
New industrial developments in the Houston area are growing in size, reflecting the shifting needs of e-commerce users and national retailers.
About 15.2M SF of industrial space is under construction in Houston right now, and the top eight projects are in excess of 500K SF, according to Colliers International’s Q3 2020 industrial market report. The majority of those are speculative developments.
“Where Houston really historically hasn’t been a big-box market, it’s starting to see a lot more demand for big-box space, and developers are responding to that with the type of product that they’re building,” CenterPoint Properties Senior Vice President Rives Nolen said during a Bisnow webinar Dec. 1. “We’re even seeing some build-to-suit activity with buildings that are a million square feet or more. And, we’ve got our first million square foot [speculative] project happening right now.”
The growing square footage of build-to-suit and speculative industrial buildings in Houston is being driven by large e-commerce players like Amazon, which has been a direct beneficiary of the coronavirus pandemic.
Houston’s industrial market reported 1.2M SF of positive net absorption in Q3, according to Colliers International. About half of that volume was attributed to Amazon moving into 443.5K SF in Houston’s northwest corridor, as well as 200.4K SF in the south corridor.
About CenterPoint Properties
CenterPoint is an industrial real estate company made up of dedicated thinkers, innovators and leaders with the creativity and know-how to tackle the industry’s toughest challenges. And it’s those kinds of problems — the delicate, the complex, the seemingly impossible — that we relish most. Because with an agile team, substantial access to capital and industry-leading expertise, those are exactly the kinds of problems we’re built to solve. For more information on CenterPoint Properties, follow us on LinkedIn. For all media inquiries, including requests for interviews with CenterPoint executives, please contact media@centerpoint.com or 630.586.8285.
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