Houston Sales Up 127%
As Houston’s industrial developers continue to stay busy, it comes as no surprise that industrial sales have followed suit. According to a November report by NAI Partners, Houston’s warehouse sales have seen a 127% growth compared to last year’s volume, absorbing about 6.4 million SF. In 2017 alone, industrial real estate in Houston has recorded a staggering $984 million in sales and is poised to break the $1 billion barrier by the end of the year. NAI reports that institutional investors were responsible for almost 40% of the sales, 12% of the deals were REITs, and 10% were foreign investors. A couple big deals include: Pure Industrial REIT’s $63.5 million purchase of the 1 million-SF IKEA Distribution Center in Baytown and WPT Industrial REIT of Toronto’s $40 million purchase of the Apex Distribution Center on Brittmoore Road.
Thanks to e-commerce, a population boom, and the expansion of the Panama Canal, Houston is seeing an increase in major container traffic from Asia. In years past, Dallas was considered the region’s major distribution hub, as goods would be shipped into the Port of Houston, transferred to Dallas, broken down into smaller units, then re-shipped back to Houston. Houston developer Robert Clay of Clay Development and Construction commented in a Realty News Report interview, “My opinion is that instead of five major distribution markets around the U.S., there are now 10 less-major markets and Houston is one of those.”