TAG Industrial Watch: October 19, 2024

In this week’s edition of the Industrial Watch, we take a look at how TAG’s major markets in Texas performed during the third quarter. Starting with the Dallas-Fort Worth market, the vacancy rate remained steady at 9.5% thanks to net absorption keeping pace with net deliveries for the first time since the start of 2023. Although vacancies did not increase, annual rent growth experienced a sharp slowdown to 5.9%. The Austin market essentially mimicked DFW as demand stayed in lockstep with supply, holding the vacancy rate steady at 9.6%. Unfortunately, this did not prevent asking rents from falling for the second quarter in a row, pushing the year-over-year rate down to 0.8%. Houston bucked the national trend as demand well outpaced supply pushing the vacancy rate down from 7.3% to 7.0%. Nonetheless, rent growth decelerated to 2.0%. Although imports continue to pour from Mexico into the U.S. through Laredo, industrial demand in the port city contracted, lifting the vacancy rate by 100 basis points to 5.8%. As expected, annual rent growth continued to drop, touching 2.4% ( CoStar).


I N D U S T R I A L   N E W S

Home Depot Sheds Warehouses As Retail Markets Shift
GlobeSt.com – October 11, 2024
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Prologis Sees The Bottom Of The
Industrial Market As It Beats Q3 Forecasts

Bisnow – October 16, 2024
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Industrial Deal Volume Down, Prices High
Commercial Property Executive – October 8, 2024
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Retail Sales Rose 0.4% In September,
Better Than Expected; Jobless Claims Dip

CNBC – October 17, 2024
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Retail Sales ‘Reality Check’: This Was The Biggest
Positive September Seasonal-Adjustment Ever!

ZeroHedge – October 17, 2024
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R E G I O N A L   N E W S

Basis Picks Up 14-Property Texas Industrial Package
Connect CRE – September 30, 2024
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3 Large Texas Manufacturers Apply For State Tax Breaks
Connect CRE – October 1, 2024
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Hillwood To Develop 1.1 MSF Facility In Fort Worth
Commercial Property Executive – October 9, 2024
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MDH Partners Buys IKEA Distribution Center Near Houston
Commercial Property Executive – October 15, 2024
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Industrial Vacancy Rate Levels Off In Inland Empire
GlobeSt.com – October 8, 2024
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