Press Release

CBRE Report: Warehouse Construction Surge Lifts Industrial-Land Prices By Double Digits In Houston

03 1月 2018


Big Increases In 2017 Illustrate Supply-Demand Imbalance For Industrial Land In Densely Populated Markets

The e-commerce-fueled surge in development of warehouses and distribution centers has generated double-digit, year-over-year percentage increases in prices for industrial land in major markets, including Houston. This research is featured in a new report from CBRE.
CBRE found that the average price for large industrial parcels of 50 to 100 acres – usually earmarked for construction of large, regional warehouses – increased to more than $100,000 per acre from roughly $50,000 a year ago.
Similarly, industrial plots of five to 10 acres – often suited for construction of smaller, infill distribution centers in urban or suburban settings – increased to more than $250,000 per acre this year from roughly $200,000 a year ago.
In Houston, CBRE found land prices rose to an average $196,000 per acre, a 14 percent increase from the previous year. “With the current tenant demand in the Houston area, pricing is expected to continue to increase in 2018” said Tom Lynch, CBRE Senior Vice President.
“Escalating land prices are a big reason why new supply of U.S. warehouses and distribution centers hasn’t kept pace with strong demand in recent years,” said David Egan, CBRE Global Head of Industrial & Logistics Research. “This situation won’t go away any time soon, because the markets where distribution centers are most in demand – typically near or in densely populated city centers – have scant available land for industrial uses.”
CBRE also found double-digit percentage increases in land prices in other major industrial markets, including California’s Inland Empire (up 35 percent this year to $980,000 per acre), Northern New Jersey (up 17 percent to nearly $1.8 million), Las Vegas (up 17 percent to $220,000), Chicago (up 16 percent to $250,000), and Atlanta (up 14 percent to $100,000).
In many cases, the markets that registered substantial gains in land prices also saw increases in average asking rents.


About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at