Houston industrial flex spaces see longer lease times

Houston’s industrial real estate continues to see strong leasing activity, with spaces filling up quickly. Warehouse and distribution centers, along with manufacturing facilities, currently boast the shortest time available, averaging just under 7 months to lease up, according to the latest 4-quarter rolling average.

In contrast, finding flex tenants takes an average of 9.5 months, exceeding the overall market average of 7.1 months. This is likely due to the unique composition of flex spaces, which typically contain 30–50% more office space than industrial space.

“Months on the market" is a key metric that tracks how long a space remains available before securing a tenant. Shorter available periods, like those seen in warehouse/distribution and manufacturing product, suggest strong occupier demand and a healthy market. This trend could be due to a combination of factors, including rapid population growth and strong e-commerce activity driving warehouse needs and a slowdown in new construction activity, allowing new supply to be absorbed more efficiently.