Port Of Houston Leads The Nation With Largest Decline In Real Estate Availability
Houston had the country's largest drop in year-over-year industrial real estate availability — 6.3% — in Q2, according to JLL's recently released North America Seaport Outlook.
Gulf ports are gaining share of TEU volumes (the metric measuring cargo on ships) as a result of the Panama Canal expansion and subsequent larger vessels. That is driving industrial activity along the coast.
Much of Houston's overall market activity is driven by the strength of the downstream sector and resulting petrochemical boom. Resins/plastics and chemicals/minerals account for 46.7% of the Port of Houston’s exported TEUs. An estimated 250,000 TEUs in new exports will be created by 2019 as newly delivered petrochemical projects ramp up production.
To keep the growth going, the Port of Houston expects to invest $333M in capital projects over 2017 and 2018, including adding additional Post-Panamax cranes where needed. Bayport Wharf No. 2, the fourth wharf at the terminal, is under construction, and reconstruction of Barbours Cut Wharf No. 2 is progressing rapidly.
While not traditionally a big-box market, Houston is evolving as large industrial users seek to capitalize on the region’s shipping and distribution networks.
