Small bay and midsized industrial spaces command 10% rent premium in Houston

In Houston's industrial market, smaller spaces (less than 250k square feet) command a 10% higher average rent than larger spaces (greater than 250k sf). The true engine of the Houston industrial market is the consistent demand from local businesses for smaller space.

Logistics, distribution, and parcel delivery companies are the dominant occupiers in both size categories, accounting for approximately 22% of all leased space since 2010. This trend continues, with these sectors representing 17% of leases for larger spaces and 22% for smaller spaces in Q4 2024.

Large tenant leases often grab headlines and can significantly impact the market—as seen during the pandemic boom when a surge in demand from retail and healthcare drove almost a 10% rent increase for larger spaces in Q3 2020 alone, with tenants including Amazon, Dollar Tree, and Medline Industries each completing leases for larger spaces.