MOST INDUSTRIAL SPACE TO HIT MARKET IN 5 YEARS
markets of Dallas-Fort Worth (DFW), Houston and Austin are all in the top 10, with Phoenix; Inland Empire, Calif.; and Atlanta joining them. INDUSTRIAL IS BIG IN TEXAS — AND GROWING Specifically, the market that is adding the most industrial square footage is DFW — and by quite a large margin: The metroplex will add 28 million square feet of industrial space across nearly 80 properties. In fact, this one market alone will account for eight percent of all the industrial space added this year in the entire country. Meanwhile, Austin is set to add 10.4 million square feet of industrial
space, which is more than 500 per- cent more space than it added last year. However, Elon Musk and his 4-million-square-foot Giga Factory and Seefried’s 3.8-million-square- foot Amazon distribution center are adding more than half of the total Austin square footage. And, although Houston is adding 7 million square feet less than it did last year, it’s still good enough to make the top 10. Despite the decline in the oil and gas industry (which hit the city hard), the city is adding 10.3 million square feet of industri- al space this year. Even so, Houston does still seem to be bleeding mar- ket share to other Texas markets, like DFW and Austin.
So, with all this demand, will the supply that’s coming online this year be enough? If not, it won’t be for lack of trying. This year, 342 mil- lion square feet of industrial space is set to be completed — a 24 per- cent increase over last year and the most in the last five years. All that space will be spread across more than 1,000 properties that would occupy a space the size of Chicago’s O’Hare Airport. And, while most of this inventory is spread around the country, the south and western markets seem to be getting the largest pieces of the pie. Specifically, the top three Texas
12 : : COMMERC IAL REV I EW
Made with FlippingBook Online newsletter