Stream Industrial Leasing
Our unique approach to leasing unlocks the full potential of industrial real estate assets. We place a heavy emphasis on both market knowledge and creativity in order to maximize opportunity for each one of our clients. Stream’s industrial division has continued to see quick demand in
the Houston market and is rapidly expanding.
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Quarter
THE
Fairway Business Park
Bogle Enterprises
1,586 SF
HOUSTON
320 MM
30 MM
9.4 %
SQUARE FEET
OF INVENTORY
SQUARE FEET
OF AVAILABILITY
Q3 2020
AVAILABILITY
26MM+
TOTAL SF IN THE
INDUSTRIAL LEASING PORTFOLIO
DEALS
COMPLETED
YTD
SQUARE FOOTAGE
OF DEALS YTD
144
4.7MM
BOOMING USER SALE ACTIVITY
4 / 4
POST PANDEMIC SURGE
3 / 4
THE E-COMMERCE NON-EFFECT (YET)
2 / 4
CLASS B PRODUCT REIGNS SUPREME
Class B product has flown under the radar with consistent rent growth and occupancy levels during the pandemic. These buildings are somewhat insulated from new construction, as much of the newer product is bulk in nature and not able to accommodate users under 50,000 square feet.
1 / 4
23MM SF of speculative development has
delivered since 2019
1
North submarket will get
worse before improving
2
Future development pipeline
is slowing down
3
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Houston Market Trends
It is no secret that e-commerce is growing exponentially in most every major market across the country. With people spending considerably more time at home during the pandemic, online ordering has exploded and has accelerated this trend by several years in a matter of months. In Houston alone, we are tracking 9.0 million square feet of national e-commerce providers’ requirements surveying the market.
Many of the users with requirements in the market have ties to consumer goods or construction materials and should help absorb some of the speculative product. We expect continued growth in deal velocity as the market returns to some sort of normalcy and certainty headed into the new year
With historically low interest rates, we have seen a huge surge in users looking to purchase their own facilities. In a more balanced market, these users would have few functional or new construction options available to buy and purchasing a facility is typically a want and not a need. With the amount of new construction, some developers are getting creative and offering their buildings for sale at a number that makes sense.
3040 Post Oak Blvd. Suite 600, Houston, TX 77056
713.300.0300 | www.streamrealty.com
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Smallest deal
LARGEST DEAL
Bay Area Business Park
Dunavant
251,680 SF
New submarkets and micro markets are emerging
4
Industrial Market Take Aways
Deals in the Market
INVENTORY:
15,216,467
AVAILABLE SF:
1,303,293
Q3 AVAILABILITY:
8.6%
INVENTORY:
37,043,919
AVAILABLE SF:
1,694,642
Q3 AVAILABILITY:
4.6%
INVENTORY:
23,044,538
AVAILABLE SF:
1,241,186
Q3 AVAILABILITY:
5.4%
INVENTORY:
46,833,225
AVAILABLE SF:
5,361,879
Q3 AVAILABILITY:
11.5%
INVENTORY:
100,411,628
AVAILABLE SF:
8,906,263
Q3 AVAILABILITY:
8.9%
INVENTORY:
42,550,233
AVAILABLE SF:
4,343,897
Q3 AVAILABILITY:
10.2%
INVENTORY:
55,392,550
AVAILABLE SF:
7,432,002
Q3 AVAILABILITY:
13.4%
N
NW
SW
S
E
W
SE
Davis Lamberton
Analyst
William Carpenter
Associate
Andrew Littlefield
Associate
Heath Donica
Associate
Tyler Maner
Managing DIrector
Matteson Hamilton, SIOR
Managing Director and Partner
Justin Robinson, SIOR
Partner
Jeff Pate
Vice President
Jeremy Lumbreras, SIOR
Vice President
Garret Geaccone
Associate
Boone Smith
Senior Associate
Woody Hillyer
Associate
Notable Industrial Deals
Stream Industrial Portfolio
Houston Industrial Q3 Stats
Total Square Footage by Submarket
Vacancy by Submarket
Vacancy Rate
Percentage of deals per Submarket
Total 12,412,000 74
Q3 Industrial Transactions
NORTH
NORTHWEST
SOUTHWEST
SOUTHEAST
SOUTH
WEST
EAST