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Texas is a Top 10 Market for Establishing a Warehousing Presence

Posted by Goldin Peiser & Peiser on Aug 6, 2018 3:45:43 AM

Houston and Dallas lead the list of the top 10 U.S. markets to establish a warehousing presence, according to recent research by commercial real estate firm JLL. The purpose of the research was to examine the best locales for shippers and third-party logistics (3PLs) to establish such a presence.

In "The top 10 markets at a glance: the link between industrial real estate and population growth," JLL studied the link between real estate and population growth to determine where people are moving and whether logistics is keeping pace. The Sunbelt region, comprised of Texas, southern California’s Inland Empire and Atlanta, are leaders in attracting domestic and international migration. In its research, JLL defines regions by where there is still warehouse and buildable land available for development.

On a percentage basis, JLL’s population growth projections from 2017-2022 for U.S. warehousing markets include:

  • Houston 11.1%
  • Dallas 8%
  • Atlanta 5.8%
  • Seattle 5.2%
  • Los Angeles 4.7%
  • Inland Empire 4.3%
  • New Jersey 4%
  • South Florida 3.6%
  • Eastern and Central Pennsylvania 3.4%
  • Chicago 2.9%

According to Gillam Campbell, JLL research manager for the industrial property sector, one of the most significant findings from the survey is the growth estimates in Texas.

“Houston and Dallas are already huge population centers…with so much more growth projected there,” she said. “This makes for great opportunities for new investing. The trend of population migration in the U.S. to Sunbelt areas is really apparent [in Texas].”

In the research report, JLL emphasized how warehouse development near large population hubs is considered a key strategy in meeting customer demand for same- or next-day delivery, a factor that has increased in importance in recent years.

Some of the high population markets, such as Los Angeles, New Jersey, and South Florida, are facing challenges of near all-time high rents and the lack of rapidly available buildable land. Such markets are resulting in slower inventory growth in recent years.

The Manufacturing and Distribution Services Group at Goldin Peiser & Peiser monitors warehousing and logistics trends as they relate to the Texas market and the nation. For more information, please contact the Manufacturing and Distribution Services Group. 

Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.


Topics: Manufacturing