Institutional industrial product continues to perform at a high level, Stream’s Michael Flowers, Jeremy Lumbreras and Blake Warren tell us. The sector started off with 3.7M SF of positive net absorption in Q1, and in the last 45 days, the team’s seen 550k SF leased in the Northwest submarket and 460k SF in the North submarket. All these deals were completed in new spec developments, which the gents say is reassuring since about 80% of product delivered in this cycle is in those two areas. The absorption is from a mixed bag of users, including a couple of large energy-related leases. Most, however, are distribution deals.
Jeremy, Michael and Blake say that activity usually cools off over the summer, but culminates in strong leasing demand in late Q3 and Q4. Stream’s tracking 4.8M SF of active requirements in the market, and the gents feel confident many will transact by year-end, making 2015 a very healthy absorption year. Stream itself has closed 300k SF of deals across the metro within the last month, including 66k SF to Dunavant Trans Gulf Transportation at Bay Area Business Park (pictured), 55k SF to Dynamex Operations at Alamo Crossing, 51k SF to Image Engine at Northwest Distribution Center, and 30k SF to Goodman Distribution at Bayou Bend Business Park.