HOUSTON—According to JLL research, the northwest continues to be one of Houston's top-performing industrial submarkets, recording 996,628 square feet of positive net absorption in the first half of 2017. On a whole, Houston's industrial market remains healthy, with an overall vacancy rate of just 5.1%.
Demonstrating this healthy market dynamic, LSI Industries Inc. recently renewed its 140,695-square-foot industrial lease at Prologis Park–West by Northwest, which is located at 14902 Sommermeyer St.
Built in 1983, the 264,461-square-foot industrial building was the second of 26 buildings constructed within Prologis' West by Northwest industrial park. Features of the building include front-load dock configuration, ample parking, 24-foot clear heights, and immediate access to Beltway 8 and Highway 290.
JLL's Jeff Venghaus negotiated the terms on behalf of the tenant. Kevin Wittler of Prologis represented the landlord.
“The strategic location and existing improvements are the best features of this property,” said Venghaus. “Its position is close to existing labor pools and main transportation corridors. The space continues to serve the business operations of LSI Industries Inc. very well.”
Founded in 1976, LSI Industries is a manufacturer of LED lighting solutions. The Cincinnati-based company has facilities in Kansas, Kentucky, New York, North Carolina, Oregon, Rhode Island and Texas.
“Industrial market fundamentals continue to be quite healthy with demand driven largely by e-commerce, consumer goods, plastics and logistics,” Venghaus tells GlobeSt.com. “Thanks to a growing population, world-class port, business-friendly environment and vast transportation network, Houston is a great place for both distribution and manufacturing end-users to locate and do business.”
JLL research also indicates that Houston is rising as a big-box market, GlobeSt.com learns. The firm's second quarter report shows a record seven warehouse/distribution facilities greater than 400,000 square feet set to deliver in 2017. Since 2000, 42 buildings above 400,000 square feet have delivered. Prior to 2000, only 54 other buildings of this size even existed in the market. However, the rise of consumer goods delivery and population growth have been large factors in the increase.
With regard to market fundamentals, the market was deceptively quiet in second quarter, says JLL. There was only 602,267 square feet of positive net absorption due to fewer construction deliveries in the quarter. Finally, the development pipeline of more than 3.2 million square feet is highly pre-leased so the market's absorption will rebound as those are delivered, GlobeSt.com learns.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
