Key Trends Influencing Demand for Industrial Property in Texas
Prices are soaring high, yet Texas is successfully closing more industrial property deals than ever before. Vacancy continues to be at an all-time low, while capital gains generated from the market hit record highs. So, what is influencing the demand? Discussed here are the top trends you will see this year for industrial property Texas:
• More Tenants in the Market will Heighten the Need for More Locations: According to a study, there were 1,600 tenants last year seeking over 600 million square feet of industrial space in Texas. This year, the number has grown further, spiking the demand for industrial properties in this booming U.S. destination. This includes both new market occupiers as well as large companies that are considering replacing or expanding square footage.
• Growing Demand for In-House Distribution Spaces and Logistics: If you monitor the total demand for industrial spaces in Texas, over one-third is coming from distribution and logistics, third-party logistics companies, and ecommerce distribution. Of these, the demand from in-house distribution and logistics is witnessing explosive growth of 84% year over year. This is also expected to affect the demand-supply balance for industrial property in Texas.
• Industrial Real Estate Supply is Growing at a Rapid Pace: In certain parts of Texas, the supply of industrial real estate is rising steeply. These areas include: Dallas/Fort Worth, Houston, Austin, and others. From manufacturing facilities to warehouses, and distribution & logistics facilities to industrial land – the total space available in the industrial real estate sector is growing rapidly. On the contrary, the demand is comparatively lower. Experts anticipate that abundant availability and less competition will attract more investors in the coming years.
• Tenants are Moving to New Industrial Spaces: With warehouse technology getting more advanced, industrial tenants are seeing high value in relocating to newer spaces. As such, we could see a new trend of flocking to prime locations and top-notch spaces, increasing relocations by almost 108%.
Do you want to buy, sell or lease industrial property in Texas? TAG Industrial is a trusted, experienced, and knowledgeable real estate broker, assuring you in-depth research, consulting, and brokerage services in Texas.
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