After experiencing approximately 125,000 square feet of negative absorption in the fourth quarter of 2017. The Woodlands industrial market has experienced a much more welcome trend thus far in 2018 with just over 100,000 square feet of positive absorption. Landlords have taken note of the improvement and rental rates have been rising while tenant concessions have been on the decline.
As predicted earlier this year, much of the absorption can be traced to the steady rebound of the oil and gas industry. As the price of oil continues to improve we anticipate that there will be a sustained level of tenant demand in the market. With increased demand and dwindling supply, we forecast developers will look to take advantage of the improving market fundamentals. The past two and half years have been relatively quiet from a construction standpoint with approximately 170,000 square feet of new product delivered in that timeframe. While notable, it is significantly less than the approximately 400,000 square feet which was delivered between 2014 and 2015. While the fundamentals begin to signal a call for new product, it will also be imperative for developers to watch the rising interest rates and the impact they will have on new projects.
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. 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 and will work hard to assure the landlord-tenant relationship you are seeking will be a successful one. Tap into our insight, leadership, and expertise by calling 281-367-2220.
Presented by: Sean Durkin & Neal King of the J. Beard Real Estate Company
To learn more about The J. Beard Real Estate Company, visit www.jbeardcompany.com.
