Warehouse Property | Texas Triangle Dallas Houston San Antonio

With the exception of San Antonio, the Texas Triangle reached it’s lowest point of new construction since the 1990’s. The following is a warehouse update on what is going on in the Texas Triangle area.  Austin and Dallas hit their lows for warehouse properties in the months of May and October in 1992 with Houston to follow in 1993. The most construction for warehouse properties is currently in San Antonio, whereas San Antonio did not hit its low for warehouse properties until February 2011.

Warehouse growth rates come in at 52% from January to November 2015 for San Antonio followed by Austin with 40%. Warehouse properties come in at the most volatile type of commercial property followed by office and then retail. The exception to this general rule of thumb would be Houston that has higher volatile markets in office properties.  Austin registers the lowest volatile office market regarding construction.

Peaks and Troughs

Construction as a rule runs in alignment with booms and busts in the economy , or simply stated supply and demand. For Austin as an example there are always greys, although demand is very high for warehouse property , construction is not as robust because the larger companies and not providing as much demand as the smaller end user or medium sized businesses.  Each construction cycle is a bit different from previous periods due to the external factors imposing their pressure on the industry at the time. Typically a contraction will last longer than an expansion phase. The key here is to watch based on history that lower construction activity is preceding a recession period, is a bit premature to determine if the Texas economy will continue to slow in 2016, however indicators do show a slow down coming.