The McAllen Industrial Market registered positive net absorption of just under 195,000 sq. ft. in Q1 2020, a slight increase of 10,057 sq. ft. compared to Q4 2019.
Q1 2020 net absorption was the result of delivered construction instead of the leasing of existing space and a 130,000 sq. ft. space was vacated during the quarter, causing the vacancy rate to tick up to 2.3%.
The quarter closed with users seeking 1.8 million sq. ft. of space. This is 680,000 sq. ft. more than total available space and nearly three times the total vacant space in the market.
Quarter-over-quarter, the market-wide warehouse and manufacturing asking rate grew by $0.02 per sq. ft and Class A rent increased by $0.06 per sq. ft. This marked a new high for both the market-wide rate and Class A product.
Space under construction consisted of 10 BTS projects totaling over 340,000 sq. ft. and one 110,000 sq. ft. spec that broke ground during the quarter.