Todd Mason, senior vice president of Cushman & Wakefield and president of the Houston Association of Realtors, tells GlobeSt.com that he is "cautiously optimistic" about the future of the northwest industrial submarkets. Mason says rental rates seem to be holding even though the market is somewhat soft.
According to Mason, the northwest near submarket is centered by Texas 290 and heads west until Beltway 8, the northwest far is also centered by Texas 290 and extends beyond Beltway 8 to the western edge of town.
Northwest near, which has 28,270,241 sf in a 482-building inventory, is bearing a 105,409-sf negative absorption. It's also sporting a 13.8% overall vacancy rate, second only to the far south submarket with 14.3%. The submarket also had 271,400 sf of completed construction by the end of the first quarter, with 269,760 sf under construction.
Northwest far hosts a whopping 42,128,524 sf of inventory in 700 buildings. It's negative absorption totals 215,677 sf, with 463,090 sf in completed construction and 1,054,000 sf under construction. It is carrying a 12% vacancy rate.
The numbers are especially chilling when considering that the two northwest submarkets comprise by far the most sf of industrial product in the city. Cushman & Wakefield divides the city into 16 submarkets, with exactly half reporting negative absorption. Others with negative absorption in the overall 257 million-sf industrial market are north mid, 30,884 sf; north far, 55,092 sf; north Montgomery County, 328,023 sf; northeast far, 21,882 sf; south near, 259,504 sf; and south far, 90,246 sf.
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