By Amanda Moore, Managing Consultant, Houston
Harris County, Texas has released the vast majority of their 2018 notice values for commercial real estate. They’ve come out especially strong in the industrial sector with warehouse properties seeing a 12% increase over the 2017 certified values and a 6% increase over the 2017 noticed values.
Harris County says Houston is becoming an “industrial hub” due to the rapid growth in e-commerce driving high demand. The county points to flat vacancy rates at 5% and increasing asking rental rates to support their position on the warehouse market. Of the 6.4 million SF of warehouse product under construction, 29.3% is pre-leased. The price at which warehouse product is trading is also increasing - $77 PSF vs. $67 PSF in the prior year. Port of Houston is emerging as a key national distribution region, further fueling the fire for increasing warehouse values with decreasing cap rates YOY.
Paradigm represents over 300 industrial properties in Harris County alone, which includes some of the major players in the warehouse sector. Our Houston team has deep expertise in the industrial space and works closely with our clients to fight these aggressive increases. If you have questions regarding your valuation notice, please don’t hesitate to contact us.
Don’t forget: The Texas Real Estate Appeal Deadline is May 15th