Average asking rates for all industrial properties held steady at $0.48 per-square-foot triple net and recent deals are still competitive as to what has transacted in the market during the last 12 months. The four largest submarkets remain very active from a development standpoint, with the Southeast and North commanding the largest shares. Both have 3 million square feet of new supply underway.

While the construction pipeline fell marginally in the first quarter, it continues to be largely speculative, 70.7%, and that spec product is minimally preleased. Additionally, the number of proposed industrial buildings has multiplied significantly in recent quarters as capital-rich developers remain on the hunt for sites. These projects are in various stages of permitting and build-out, but several significant tracts have begun site clearing and are expected to break ground in the coming weeks, according to the report.

Looking ahead, end-user demand is expected to be robust, especially in traditionally strong sectors such as consumer goods, plastics, and logistics and distribution. The next few quarters will provide more clarity into the supply-demand balance in the marketplace, depending on which new projects make it out of the ground. The Houston industrial market will likely continue to remain landlord-favorable in the near term, says JLL.