Boston, MA 04/16/2014 (wallstreetpr) – DCT Industrial Trust Inc (NYSE:DCT) is a real estate company based in Denver with operations in Houston and elsewhere in the U.S. The company’s Houston real estate activities mainly served companies in the oil and gas industry. Business in Houston boomed on the back of expansion by oil companies to capture more manufacturing and storage space. But while the boom in deals from energy companies continue to fuel growth for the DCT in Houston, the market is now diversifying, and the company expects to perform even better in the coming year.
According to the company’s VP in Houston, Mr. Justin Bennett, many companies are coming to serve retail consumers in Houston and that is creating a big demand for real estate facilities. He noted that while the bulk of industrial deals still come from the energy companies, diversification in the market can be seen unfolding very fast and the trend is expected to benefit DCT into the future.
Expanding consumer base attract players
The expanding consumer market in Houston is attracting many players from food providers such as B&G Food Inc (NYSE:BGS) to technology companies such as Amazon.com Inc (NASDAQ:AMZN). It is reported that in 2013 Amazon leased property, in north Houston measuring 240,000 sq ft. It is currently unknown what purpose Amazon intends for its leased property in north Houston. However, it nonetheless confirms the diversification trend in Houston’s industrial real estate market.
As for B&G Foods, the company leased property measuring 267,000 sq ft facility from DCT Industrial Trust Inc (NYSE:DCT) from which it is expected to distribute its food products.
Better things ahead
DCT Industrial Trust Inc (NYSE:DCT) expects consumer and energy-related industrial deals in Houston to increase. But even with almost an explosion of real estate market in Houston, industrial deals are mostly happening in the north and northwest Houston.
With the lowest rate of vacancy in the industrial real estate market throughout the U.S., at 4.3 percent, Houston is shaping out to be a lucrative market for real estate companies.
