Houston’s industrial market finished strong with net absorption of 3.9 million sq. ft. Overall, this brought the 2020 year-to-date absorption to roughly 11.4 million sq. ft., which is the highest net absorption Houston has seen over the last 10 years.
The most important stimulus tool is the vaccines that are now being deployed. They will not prevent a difficult winter but should allow for some normalization of activity by mid-Q2 2021.
The pipeline of under construction properties retracted during Q4 compared to previous quarters. Q4 brought 1.2 million sq. ft. of project starts, bringing the total number of under construction to 16.9 million sq. ft.
Houston’s economy continued to grow, finishing the year strong. In the month of November, the city added 25,800 jobs, bringing the number of jobs recovered since April to 202,500.
Presently, we anticipate GDP growth nearing 5% in 2021 with upside risk. The outlook will be uneven across sectors, with the travel and hospitality industry likely to operate below potential for some time while technology and goods-production should see a quicker path to recovery.