Houston's NW industrial submarket sees strong expansion

​​​​​​​​HOUSTON – The Northwest industrial submarket has posted positive net absorption in all but three quarters during the past five years, and first quarter 2019 was one of them.

The previous quarter had posted a robust 1.7 million sf of absorption. Vacancies have been gradually rising, although only averaging 5.4 percent since 2014. 

Last quarter, over 1.3 million sf of industrial space delivered with another two million under construction. The average asking rents are $0.59 per sf. Inventory surpassed 166.8 million sf. 

Additionally, Home Depot recently signed a 20-year, 770,640-sf lease for a distribution center in the 106-acre Grand National Business Park. The site will be built in two phases, with phase one delivering in April 2020. 

The immense infrastructure improvement to SH 290 warrants the long-term continual growth of the submarket and serves as an incentive for expanding development along the corridor. 

The final component of the $2.5 billion project to widen SH 290 from Loop 610 to the Waller County line—a large flyover bridge carrying FM 1960 over 290—will be complete by late 2019.