Page 20 - NBIZ August 2021
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Construction Activity
        Houston Industrial Construction

                         # of Buildings                                         Available SF

                                    105                                         5,532,500

                                Total SF                                       % Pre-leased

                         15,411,000                                                   64.1%

                         Future Deliveries
                           Future Deliveries
         6,000,000                                                                         3,610,400

         5,000,000                                                           5,965,400
               -                                                        North        Northeast    South
                    Q3 2021     Q4 2021    Q1 2022     Q2 2022
                                                                        Northwest    Southeast    Southwest

           The COVID crisis disrupted the supply chain, but the   cap rate compression continues to gain momentum as
        surge in retail spending has compounded the problem.   institutional investors seek to capitalize on growth in ware-
        Container ports all over the country are experiencing   housing and e-commerce. Overall, Houston continues to
        increased volumes of TEU’s leading to longer wait times   show strong market fundamentals and is poised to produce
        and surging shipping costs. According to Sea-Intelligence   strong numbers through the end of the year. N
        ApS, only 40% of container ships were on time, arriving at
        ports with average delays stretching to more than six days.
        The cost of moving a 40-foot container from China to the   Lisa Bridges joined Colliers in 2010 as Director of
        U.S. West Coast ports averaged over $5,500 in Q2 according   Market Research and has 37 years of commercial real
        to the Freightos Baltic Index, which was up 34% since the   estate experience. Lisa initiates proactive market
        start of the year and 228% higher than the same period last   research projects to further the business goals of the
        year. Container activity at the Port of Houston jumped 25%   company. She can be reached at
        in April, 30% in May, and 39% in June.
           The increase in construction pricing has caused several   Zack Taylor joined Colliers in March 2021 as Senior Vice
        new speculative development projects to be put on hold.   President. Zack specializes in the sale and leasing of
        This temporary pause in new construction combined with   industrial real estate with a particular focus in southeast
        solid leasing activity should lead to lower vacancy rates   Houston and other markets along the Gulf Coast. He can
        toward the end of the year and into Q1 2022. In addition,   be reached at

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