Northwest Houston Industrial Market Report
Houston Northwest Inner Loop Submarket Overview
The Northwest Inner Loop submarket is the second-largest industrial submarket in Houston. It has 63.7 million square feet of space, and has a strong location near the 610 Loop area. The location also contributes to the logistics presence here. Several manufacturers serve the industries present in the area, such as aerospace, consumer goods, grocery, and construction.
Houston Northwest Inner Loop Submarket Performance
Despite vacancy consistently trending upwards, the current rate of 5.6% remains below the historic average of 6.8%. The lack of land here contributes to vacancy not stabilizing, as well as the expensive cost of land. However, properties below 25,000 square feet are noting the lowest vacancy metric at 3.2%. Smaller tenants under 25,000 square feet lead leasing metrics, as they make up about 75% of the leases signed in a year. The average building size here is also on the smaller scale at 35,000 square feet.
Northwest Inner Loop By the Numbers
- Vacancy Rate: 5.6%
- Rent Growth: 1.5%
- Deliveries SF: 18.3K
Last 12 Months | Source: CoStar Group
Houston West Outer Loop Submarket Overview
There is 33.7 million square feet here, with proximity to Sam Houston Tollway and Highway 290. Land here is inexpensive, which has led to a boost in development for industrial properties. Some manufacturers that have moved in here include Metallic Building Systems and Toshiba International Corporation. Both took up 615,000 and 490,000 square feet, respectively.
Houston West Outer Loop Submarket Performance
The submarket has noted an influx of 2.2 million square feet in completions throughout the past three years. There was 130,000 square feet added in just the past 12 months, and 70% of that is up for lease. Larger tenants are moving into the area to take up available space. Spaces around here still remain around 35,000 square feet, but 25% of deliveries within the past three years have been for properties that are 100,000 square feet or above. However, the submarket did see a notable transaction for a smaller property earlier this year. The 27,876-square-foot Four Seasons Business Park sold for $4.2 million this April.
West Outer Loop By the Numbers
- Vacancy Rate: 5.0%
- Rent Growth: 1.5%
- Deliveries SF: 827K
Last 12 Months | Source: CoStar Group
