HOUSTON—In commercial real estate, vacancy can greatly increase (or decrease) depending on the net absorption of new deliveries that add to existing vacant or occupied stock. Also, deliveries year over year under low net absorption can lead to increases in vacancy.
The Northwest industrial market has had low vacancy since 2006, with only a modest uptick in 2016 with the large deliveries in 2015, says Houston-based NAI Partners. From 2005 to 2008, the Northwest corridor had a modest surge in new deliveries each year, which was balanced by annual net absorption that matched annual deliveries. This kept vacancy at 4 to 6%, the brokerage indicates.
From 2012 to 2015, there was another surge in construction and new deliveries, which was also largely balanced by net absorption, with the exception of 2015, leading to a modest uptick in vacancy to 6.7% in 2016. Overall, the Northwest market has remained relatively stable with new supply (deliveries) matched by demand (net absorption) from 2006 to 2014, resulting in low vacancies of 3.7 to 6.7%, according to NAI Partners.
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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.
