Page 20 - NBIZ August 2021

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
526,400
4,000,000
260,900
3,000,000
2,291,800
2,000,000
2,596,800
1,000,000
- 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 lisa.bridges@colliers.com.
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 zack.taylor@colliers.com.

20 NBIZ ■ August 2021