The Woodlands Area Industrial Market continues to grow in correlation with the steady increase in population experienced by South Montgomery County. The effects from major corporate relocation’s and expansions over the past decade have significantly driven supply and demand. According to Costar, the competitive industrial product in the market has surpassed 8.2 million square feet, which represents an approximate 5% increase in supply since 2014. Overall vacancy is currently 9.4%, which represents an increase over the market’s 5-year average (7.10% vacancy). The majority of the increase in vacant space can be attributed to the lingering effects from the downturn in the energy sectors combined with the additional supply added to the market. However, the overall consensus is that the continued rebound in the price of oil will increase tenant activity and in turn lead to expected positive absorption through 2018. In the meantime, we are anticipating landlords will remain aggressive in negotiations with prospective tenants considering competing properties. On the flipside, tenants looking to renew, expand and/or relocate in 2018 would be wise to do so as soon as reasonably possible to leverage the current fundamentals.
Regardless of your industrial real estate needs, it is highly recommended that you consult with a brokerage company with the appropriate research capabilities, knowledge, and experience as 2018 is poised to be an opportunistic year for The Woodlands Area Industrial Market. If you have a business in need of the right location or are a property owner looking for the perfect tenant, The J. Beard Real Estate Company is the leader in bringing businesses and property owners together. We will work hard to assure the landlord-tenant relationship you are seeking will be a successful one. Tap into our Insight, Knowledge, and Expertise by calling 281-367-2220.
Presented by: Sean Durkin & Neal King of the J. Beard Real Estate Company
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