Increasing demand and higher asking rents show just how resilient the U.S. industrial market remains.

Cushman & Wakefield reported that in the second quarter of 2024, overall net absorption in the U.S. industrial market reached 46.3 million square feet. That’s a solid number and more than double the absorption number recorded in what was a sluggish first quarter of the year.

More than half of the U.S. markets tracked by Cushman & Wakefield Research yielded positive absorption in the second quarter, and absorption improved on a quarter-over-quarter basis in 36 different markets.

Also in the second quarter, asking rents for U.S. industrial space averaged $9.97 a square foot. That’s up 3.7% from the second quarter of last year. However, this rent growth is slowing. Cushman & Wakefield said that this year-over-year rent growth was the lowest since 2020.

Even with this largely positive news, it’s clear that the U.S. industrial sector is no longer in a boom period. Cushman & Wakefield reported that developers are pulling back on new construction in this sector.

According to Cushman’s research, 343 million square feet of new industrial space was under construction as of the end of the second quarter. That is down 14% from the first quarter. It’s also less than half of the peak of the 718 million square feet under construction in the third quarter of 2022.

Cushman & Wakefield predicts that the industrial construction pipeline will shrink further in 2025, something that will lower vacancy rates in the second half of next year.

Although the national industrial vacancy rate edged higher to 6.1% in the second quarter, this 40-basis-point increase was the lowest quarterly rise for the sector since the first quarter of 2023.

Cushman & Wakefield reported that this is the highest the vacancy rate has been in almost nine years, but that the rate still stands well below the 10-year, pre-pandemic average of 7%.

Stream Realty Partners announces that more than 50,000 square feet of new leases have been executed at The Towers at Westchase in Houston so far in 2024.

The recent leasing activity includes notable tenants such as Drilling Tools International, which leased 16,988 square feet and was represented by Peyton Poynter of Park Realty. PhiloWilke Partnership leased 14,729 square feet and was represented by Cody Little and Jordan Raney of JLL. BCS Systems leased 4,013 square feet and was represented by Eugene Terry of CBRE. Additionally, Altamira leased 7,470 square feet, while Burns and Wilcox leased 6,820 square feet, both represented by Matt Sanderson, Lauren Stifflemeier, Chad Baker, and Kennedy Gamble of JLL.

Stream Senior Vice President Brad Fricks and Vice President Matthew Seliger represented building ownership, Franklin Street Properties.

The Towers at Westchase are located at 10350 and 10370 Richmond Avenue in the Westchase submarket, providing easy access to Beltway 8 and the Westpark Tollway. The property also features various amenities, including an on-site deli and restaurant, a complimentary fitness center, a conference center, and on-site property management, as well as access to numerous nearby restaurants and hotels.

Currently, The Towers at Westchase offer a variety of available spaces to suit businesses of various sizes. At Tower I, available space ranges from 1,700 to 18,000 square feet, while Tower II provides up to 141,000 square feet of contiguous space.

CBRE has been awarded the exclusive office leasing assignment for Assembly Park, a mixed-use development located at 1717 E. Spring Creek Parkway in East Plano, Texas.

CBRE’s Ben Davis, Shannon Brown, and Julee Amparo are marketing the space on behalf of ownership, Triten Real Estate Partners (Triten).

The property was previously home to the Plano Market Square Mall before being acquired by Triten in early 2021. The previously 300,000 sq. ft. mall was redeveloped into 180,000 sq. ft. of creative office space with dedicated green space throughout. The development is finalizing a 13,061 sq. ft. spec office suite with approved permits for another 12,676 sq. ft. spec suite. Additionally, Triten built 17,000 sq. ft. of ground-up retail space and 304 multifamily units that were delivered in summer 2024.

The renovations have led to a recent uptick in office leasing activity prior to CBRE’s assignment. CMTA, a global leader in sustainable engineering, leased 8,017 sq. ft. of office space while NSM Insurance Services leased 10,648 sq. ft. of office space.

“Assembly Park is a tremendous example of how thoughtful and innovative redevelopment can breathe new life into areas to form vibrant, thriving communities,” said Ben Davis, senior vice president with CBRE. “With its focus on health, wellness, and community connection, it’s an exciting space that is perfectly positioned to complement the creative and youthful energy in East Plano.”

Assembly Park was designed to integrate the creative office space, dining concepts, and luxury residences within a walkable, park-like campus. A focus on health was a key component to the development’s design with greenspace woven in throughout the buildings, connected hike and bike trails, a state-of-the-art fitness centers and locker rooms, scooter rentals, indoor and outdoor gathering spaces and weekly programmed events.

Stream Realty Partners signed Houston’s fastest-growing specialty crating company, Gulf Coast Crating, to lease 432,316 square feet at Portside Logistics Center, a two-building, 1-million-square-foot industrial development in the highly sought-after Southeast Houston (“Port”) submarket.

This lease brings Building 1 to 100% occupancy. Building 2, which comprises 258,248 square feet and is divisible to 122,963 square feet, remains available for immediate occupancy.

Portside Logistics Center, a joint venture development between Principal Asset Management^SM and Stream Realty Partners, is located at 4838 and 4908 Borusan Road in Baytown, Texas. The premier industrial development provides seamless connectivity to major transportation routes such as the Grand Parkway, Interstate 10, and Highways 225 and 146. These thoroughfares facilitate expedited access to Port Houston’s two major container terminals, Barbour’s Cut and Bayport.

Designed with versatility in mind, Portside Logistics Center offers flexible configurations and was developed to the highest standards. It features speculative office space, LED warehouse lights, a white-boxed interior warehouse, painted columns, caulked control joints, and fully fenced and secured truck courts. Additionally, the project is LEED certified.

Stream Executive Vice President Jeremy Lumbreras and Tyler Maner serve as the leasing agents for the project and helped complete the deal. Justin Robinson heads up the development management alongside Stream Senior Director Tyler Wellborn, Director Craig McKenna, Development Analyst Matthew Sibley, and Financial Analyst Kristina Gibson. Gulf Coast Crating was represented in lease negotiations by Patrick McKiernan and James Mashni with First Houston Properties.

TradeLane Properties acquired a 145,222-square-foot light industrial facility at 915 Conroe Park West Drive in Conroe, Texas, in the Woodlands/Conroe submarket of Houston.

This Class-A building, constructed in 2020, is rear loaded and situated on 18 acres, with a 39’ clear height. Additional features include 14 dock-high doors (10’ x 10’), 2 drive-in doors (12’ x 14’), 38 trailer stalls, and 195’ deep truck courts.

Purchased within the TradeLane Properties U.S. Industrial Fund III, L.P., an investment fund focused on key Central and Southeast U.S. logistics markets, this asset was purchased on a short-term sale-leaseback and is currently being marketed for lease by Garret Geaccone at Stream Realty Partners.

The acquisition of TLP 915 Conroe is consistent with TradeLane Properties’ strategy of investing in select major U.S. logistics markets with the opportunity to add value through dedicated in-house expertise including Leasing, Accounting, Construction, Development, and Property Management teams.

Trent Agnew and Charles Strauss with JLL Capital Markets assisted in closing this transaction.

Buda Economic Development Corporation announced that Futronic USA Inc., a South Korean manufacturer of electric vehicle parts, selected Buda, Texas, as its first location in the United States in a highly competitive field of communities.

This significant achievement marks a major milestone for Buda EDC as it is the first electric vehicle parts supplier in Buda.

“The collaboration between Buda EDC, Greater San Marcos Partnership, and Opportunity Austin helped bring this to fruition, which shows how targeted economic development efforts can lead to substantial benefits for both businesses and communities,” said Buda EDC CEO Jennifer Storm.

Futronic is a leading manufacturer of motor vehicle transmission and powertrain parts. Part of Buda’s appeal to advanced manufacturers such as Futronic is the city’s proximity to two international airports and cutting-edge companies such as Samsung and Tesla’s manufacturing facility, Giga Texas. Futronic’s move to Buda launches a new era for the city, as an emerging hub for innovative companies.

“With over 3 million square feet of industrial spec space coming online, Buda is open for business,” said Storm.

The building acquisition is estimated at $11 million with a capital investment of $17 million, which includes fixtures, equipment, and building improvements. Buda EDC’s Board of Directors and Buda City Council approved $600,000 in incentives to ensure Futronic’s move, which will result in more jobs.

Buda EDC Assistant Director Shannon Mumley has worked for the past nine months to secure this RFP win. “Futronic will be Buda’s largest employer, with an estimated 350 jobs over the county median wage,” said Mumley.

The South Korea-based company will occupy a more than 66,000 square foot existing commercial space that was recently vacated, and the Buda EDC incentive will help to reactive this building as quickly as possible. Futronic expects to finish out the space by the end of 2024 and begin production in late 2025.

“This achievement demonstrates Buda EDC’s mission to create jobs, stimulate investment, and enhance the economic vitality of the region,” said City of Buda City Manager Micah Grau.