Real Estate Overview - 3rd quarter 2011
El Paso’s industrial real estate market is comprised of 54.7 MSF stretching from Santa Teresa, New Mexico in the west to Socorro, Texas in the East. The main industrial areas largely follow Interstate-10 and are clustered around the three main Ports of Entry into Cd. Juarez, Mexico. The industrial market is comprised of a mix of warehouse and manufacturing operations, most with a direct relationship to the maquiladora industry across the border.
Industrial activity in El Paso was positive in the 3rd quarter and the market continued the road to recovery which started in the 3rd quarter of last year. Gross absorption was 495 KSF and net absorption was 287 KSF. The vacancy rate dropped to 14.0% and is down from the 15.8% figure posted last year.
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Industrial Market Statistics |
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Market |
Rentable Area SF |
Vacancy Rate % |
Availability Rate % |
Net Absorption SF |
Under Construction SF |
NNN Average Asking Lease Rate $/PSF/YR |
|
West |
7,340,168 |
6.1% |
8.0% |
0 |
0 |
$3.60 |
|
Northeast |
9,014,209 |
21.9% |
24.7% |
82,842 |
12,000 |
$3.20 |
|
Central |
13,875,560 |
5.9% |
7.7% |
0 |
0 |
$3.00 |
|
East |
18,175,738 |
15.0% |
19.1% |
295,277 |
0 |
$3.65 |
|
Lower Valley |
6,252,169 |
26.5% |
26.0% |
(90,800) |
0 |
$3.65 |
|
Totals |
54,657,844 |
14.0% |
16.4% |
287,319 |
12,000 |
$3.40 |
The industrial vacancy rate declined 0.3% in the 3rd quarter as the overall industrial market continues to improve across the city. There was 495 KSF of gross absorption offset by 207KSF of space vacated. The Butterfield Trail Industrial Park continues to be the area with the highest vacancy figures but even this park recorded 83 KSF of positive absorption.
Asking rental rates appear to have stabilized for most submarkets in El Paso and are starting to increase in the east and lower valley.
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Source: 2011 3rd Quarter Market Summary El Paso, Texas / Cd. Juárez, México. CB Richard Ellis
Updated: November 2011.
OCCUPANCY STATISTICS
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Industrial Property Statistics 2006-2011 |
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|
|
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
Inventory (Square feet) |
57,850,000 |
58,690,500 |
59,800,250 |
56,800,000 |
57,167,967 |
57,520,650 |
|
Occupancy (in percent) |
92.6% |
93.8% |
91.5% |
90.5% |
87.5% |
85.5% |
|
Net Absorption |
1,250,000 |
1,560,000 |
1,026,000 |
1,758,000 |
723,661 |
570,000 |
|
Rental Range (per square foot) |
$3.30-$6 |
$3.45-$6 |
$3.45-$5.85 |
$2.75-$4.20 |
$2.75-$4.15 |
$2.55-$4.10 |
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Source: Sonny Brown Associates, LLC. Updated: February 2012. |
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Office Property Statistics 2006-2011 |
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|
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
|
Central Business District (CBD) |
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|
Inventory |
2,862,888 |
3,120,560 |
3,368,325 |
3,930,650 |
3,975,450 |
4,135,000 |
|
Occupancy (in percent) |
72.4% |
76.0% |
80.3% |
76.0% |
82.0% |
85% |
|
Net Absorption |
62,000 |
85,000 |
135,000 |
65,000 |
78,000 |
55,600 |
|
Outside CBD |
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|
Inventory |
6,175,320 |
6,585,500 |
6,785,000 |
7,485,500 |
7,682,087 |
7,765,350 |
|
Occupancy (in percent) |
82.5% |
91.0% |
89.7% |
89.0% |
90.0% |
91% |
|
Net Absorption |
165,700 |
220,000 |
195,350 |
175,440 |
186,000 |
164,565 |
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Total |
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|
Inventory |
9,038,208 |
9,706,060 |
10,153,325 |
11,416,150 |
11,612,737 |
11,891,350 |
|
Occupancy (in percent) |
74.8% |
80.9% |
81.3% |
82.3% |
84.0% |
88% |
|
Net Absorption |
42,920 |
223,000 |
330,000 |
187,000 |
224,690 |
194,400 |
|
Rental Range (per square foot) |
$10-$18 |
$12-$20 |
$12-$22 |
$12-$23 |
$12-$22 |
$12-$22 |
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Source: Sonny Brown Associates LLC. Updated: February 2012. |
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