Falling Vacancies, Rising Rents Likely At Port Of Houston

graph from Jones Lang LaSalle's 2012 US Seaport Outlook
A new study of U.S. seaports suggests the property market for the Port of Houston has bottomed out.

Commercial real estate firm Jones Lang LaSalle says the vacancy rate at the Port of Houston should fall in the near future. That will give landlords more scope to raise rents, though any rent increases are likely to be slow.

Manufacturers make up nearly a quarter of current tenant demand for the market, though the largest tenant by far is Wal-Mart.

The Port Authority plans to undertake over $200 million in infrastructure improvements over the next few years. Much of the work will go to accommodate larger vessels and increased cargo. That’s due to the pending Panama Canal expansion in 2014, as well as future demographic growth in the region.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...