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Big Box Report: NW Inventory Probably Reaches Peak

HOUSTON-The hustle and the bustle of Houston's northwest submarket may have crested. Still, a year-end call bets two million sf will be absorbed, up 28% from last year's grand tally. The question now is whether it's time to build more industrial space.

By Jennifer Brenner Andrade | Updated on December 04, 2001

HOUSTON-In a third quarter “Big Box” report, a CB Richard Ellis Houston team questions whether it’s time to “expand the farm” in the city’s bustling northwest industrial submarket.

Billy Gold, first vice president and Jeff Everist, vice president, answer: “If the absorption trends continue, we can surmise we have approximately two to three years’ worth of inventory on the ground and an additional one to two years’ worth of inventory proposed.” Next generation space, they say, will have higher clear heights, ESFR sprinkler systems, longer truck aprons and superflat floors–definitely the product of choice.

The quarterly report pegs absorption levels at 1,616,007 sf of leasing activity in 41 transactions. For the same period in 2000, 817,893 sf was absorbed via 14 transactions. The team warns, however, that “for the third straight quarter the amount of square feet leased has declined and the size of the transactions are smaller.” Still, the report predicts year-end totals will come in near the two million-sf mark, a 28% increase over last year’s grand tally.

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