Houston’s Industrial Real Estate Market Reflects Strength in Region’s Economy, Deal Sikes Reports

Houstons industrial real estate markets are demonstrating strong gains as significant job growth and Houstons emergence as a global shipping and logistics center is driving the sector to impressive levels, according to Deal Sikes, a leading Houston-based real estate valuation and counseling firm.

Houston has added more than 100,000 new jobs over the last 12 months, which has injected momentum into all sectors of the real estate market. The demand and activity in the industrial sector has been exceptionally strong and that has been reflected in the valuation of distribution buildings and other industrial properties in the Houston area, said Mark Sikes, principal with Deal Sikes.

Port Houston ranks number one in the nation in foreign tonnage and has surged to be ranked fifth in container shipping, according to the Port and JOC Piers data. In the first half of the year, Trans-Pacific imports at Port Houston jumped 24 percent, as improvements at the Port facilitated more imports through the expanded Panama Canal. Port Houston, located near Houstons massive petrochemical complex, is the nations dominant exporter of polyethylene resins used for manufacturing plastic products.

Construction activity has accelerated in Houstons industrial market, which is pushed along by the tailwind of higher oil prices in the $70 per barrel range, Sikes said. The new industrial buildings have been leasing up briskly and the vacancy rate remains fairly low. The solid fundamentals support the upward movement in the recent sales prices that have been reported.

Investors have a strong interest in the industrial sector, which is also being driven by e-commerce and the need for distribution space for consumer goods, Deal Sikes reported.


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Amazon, Ikea and other consumer goods companies have new distribution facilities in the Houston area and more are on the way, said Matthew Deal, principal, Deal Sikes. Another wrinkle to this trend is the demand from retailers for ˜last-mile distribution space that is located within easy driving distance of residential areas.

Deal Sikes provides valuation and counseling services for real estate firms, governmental agencies, law firms, and investors across the region. www.DealSikes.com

Deal Sikes
Mark Sikes or Matthew Deal, 713-662-3500