Why the Houston Market?
Houston is a major center for industrial and storage real estate, driven by its strategic location, abundant natural resources, and diverse economy. In recent years, the Houston industrial and storage real estate market has generally been strong, with steady demand and relatively low vacancy rates.
However, like any market, the performance fluctuated over the past decade depending on the economic conditions, the specific submarket, and the property type.
In general, demand for industrial and storage space increased as the economy improved, and the energy industry rebounded, leading to higher occupancy rates and rising rental rates. The growth in e-commerce and the increase in online shopping also drove demand for industrial and storage space in the area.
It's worth noting that the industrial and storage real estate market is typically more resilient than other property types during economic downturns, as the demand for these properties tends to be more stable and less sensitive to changes in the broader economy. It's also worth mentioning that Houston's industrial and storage real estate market is constantly evolving and growing, with new developments in technology, automation and logistics constantly changing the way the market operates and trends.
In recent years, several large companies have announced plans to relocate to or expand in Houston. Some examples include:
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Hewlett Packard Enterprise: In 2019, the company announced that it would relocate its headquarters from California to Houston, citing the city's "strong and diverse" economy, as well as its proximity to key customers, partners, and talent.
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Marathon Oil Corporation: In 2020, the company announced that it would relocate its headquarters from Ohio to Houston, citing the city's strong energy and transportation industries, as well as its "growing and diverse business environment."
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Brookfield Properties: In 2020, the company announced that it would relocate its headquarters from New York to Houston, citing the city's "strong and growing economy" and its "pro-business environment."
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Invesco: In 2020, the company announced that it would move its corporate headquarters to Houston from Atlanta, citing the city's "quality of life, access to talent, and favorable operating environment"
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The Kraft Heinz Company: In 2021, Kraft Heinz announced that it would relocate its headquarters to Chicago, but also included a significant expansion to the current offices in Houston and to the kraft's manufacturing facility.
These are just a few examples of companies that have recently announced plans to relocate to or expand in Houston. It's worth mentioning that Houston has a diverse economy with a mix of industries including energy, healthcare, manufacturing and transportation, which attract many companies to the area.