Second quarter 2020 marked the first full quarter in which the Houston industrial market faced pressure from COVID-19, a national recession and yet another energy downturn, reported Savills in its second quarter report on the market.
The vacancy rate for Houston industrial assets, now at 8.5 percent, increased both on a quarterly and yearly basis, increasing 50 basis points from first quarter 2020 and 210 basis points from second quarter 2019. Despite increasing vacancy rates, net absorption was still positive 2.1 million square feet, with the highest levels of net absorption observed in the North submarket, which saw the delivery of Five Below’s 860,000-square-foot warehouse; the Southeast submarket, with 507,000 square feet of positive net absorption; and the South submarket with 440,000 square feet. Consumer behavior is undergoing a significant change and has been catalyzed by temporary and permanent retail closures that have sent buyers online to acquire their goods, bu
