ICOnic News | Industrial Spaces in Houston: Meeting Diverse Demands and Economic Shifts
INDUSTRIAL SPACES IN HOUSTON: MEETING DIVERSE DEMANDS AND ECONOMIC SHIFTS
The Houston Industrial market is a great indicator of the nature of the Houston economy. When business is improving, there is a natural requirement for warehouse space; whether it's a manufacturing, distribution or storage component. In addition, industrial spaces are, in some cases, converting to retail uses replacing traditional malls and strip centers. Flooring companies are an example of this conversion.
Expanding on the retail side, athletic facilities, whether basketball, volleyball, pickleball, baseball batting cages, cricket or traditional gyms are all seeking industrial sites that work for their concept. Cost, size, columns, deed restrictions and parking are the main considerations for these uses that often dictate if the site is suitable for athletic use. Therefore, industrial properties located near residences seem to be leasing better than those located in heavy manufacturing areas.
According to current statistics, the Houston MSA has about 6-7% vacancy in industrial spaces with the bulk of that percentage centered in distribution spaces 50,000+ SF. On the other hand, spaces that are in the 5-10,000 SF range lease more quickly and are usually shorter terms. This lease structure allows landlords to increase rental rates more rapidly at renewal time. Small increment spaces appeal to a greater variety of tenants and allow for new businesses to grow because of their affordability. They also provide a path for those tenants in "incubator" spaces to upgrade to a larger space when needed.
Overall, the Houston industrial market remains vibrant, with demand driven by a diverse mix of traditional and adaptive uses that align with evolving economic trends. The next four years may influence the industrial sector with the impact of international trading tariffs especially with China, Mexico and Canada. If these tariffs are imposed on some of our trading partners, it may change the mindset of those US businesses that manufacture in foreign countries as their costs will increase and it may be more cost effective to produce in the US. If this occurs, there may be a positive trickledown effect on those businesses that supply materials.
- Mike Gornek, ICO Industrial Advisor
HAPPY 80TH BIRTHDAY, LARRY!
Last week we gathered to celebrate a remarkable milestone: the 80th birthday of our beloved CEO, Larry Indermuehle. It was a joyous occasion filled with food, gifts, laughter, and heartfelt moments that truly reflected the lasting impact he has had on each of us and our company as a whole.
The highlight of the celebration was a special video tribute featuring testimonials from the ICO team. Each message shared stories of Larry's vision, generosity, leadership and fun memories reminding us of the inspiring legacy he has built over the years. From his dedication to our company's success and to the personal mentorship he has provided to so many, his influence has shaped not only our careers, but also our lives.
As we gathered to honor his achievements, we presented him with tokens of appreciation, each one symbolizing the gratitude we feel for his decades of commitment and guidance. Laughter and stories filled the room as we reminisced about past achievements and celebrated the future we continue to build together.
Happy 80th Birthday to Larry, and here's to many more years of joy, wisdom, and success!
