Net absorption continued to trend positively this quarter, with 4.42 million sq. ft. of industrial and flex space absorbed in Q3 2019. The Northwest Houston submarket accounted for nearly half of this total amount.
Vacancy inched up 10 basis points (bps) from 5.5% in Q2 2019 to 5.6% in Q3 2019 as a result of an increased amount of new product being delivered to the market.
Construction activity took a step back this quarter, dropping 3.1 million sq. ft. from Q2 2019 to 17.4 million sq. ft. of industrial product currently under construction across the Houston metro.
Continued growth in the petrochemical and plastics industries, coupled with strong employment growth across the Houston metro, enduring population gains, and an overall solid Houston economy will continue to drive demand upwards through 2019.