In the Houston area, more than 145 Costco stores' worth of industrial space is being built. This makes Houston the No. 2 market in the Southwest for warehouses and distribution centers that are still being built.
The Community Property Executive put out information that showed about 21.2 million square feet of industrial space was being built in Greater Houston. According to the report, this number is equal to 3.9% of the total stock, which has grown to 547.8 million square feet. In other words, all of that space is the same as more than 145 Costcos.
In particular, almost 4.9 million square feet of industrial space became available in the first half of 2022. Even though the survey says it's hard to predict how much will be finished by the end of the year, the volumes of the previous years have been similar and may end up being higher than this year's: 19.6 million square feet of industrial space, or 3.8 percent of the total stock, was delivered in 2021, and 19.7 million square feet, or 3.9 percent of the total stock, was added in 2020.
The report mentions two important industrial changes in the area. Article, an online furniture store based in Canada, and TGS Cedar Port Industrial Park in Baytown share a 507,000-square-foot warehouse. At more than 15,000 acres, Cedar Port is the largest industrial park in the U.S. that is planned and served by rail and barge.
In other parts of Texas, Dallas-Fort Worth is at the top of the list and the country, with almost 60,6 million square feet of industrial space being built as of late June. That's a little more than 7 percent of the more than 840 million square feet of industrial space already in the area. Based on the numbers, that's about the same as 324 average Walmart supercenters.
Austin, with 8.3 million people, El Paso, with more than 5.7 million people, and San Antonio are also big cities (almost 4 million).
In a recent REPORT, commercial real estate services company Cushman & Wakefield says, "The COVID-19 pandemic brought new challenges to the industrial market, such as port congestion, material shortages, and skyrocketing commodity prices. However, the market has and will continue to do well."
