Houston industrial market report
Q1 2025
Bolstered by solid fundamentals, the Houston industrial market continues to demonstrate strength, adapting to evolving consumer demands. While new construction has moderated since the end of 2023, the market's enduring resilience is underpinned by steady industrial job growth and strong activity at the Port of Houston. This stability is further reinforced by a diverse tenant base, encompassing e-commerce, logistics, healthcare, and industrial equipment/machinery, creating a solid and stable foundation for sustained future growth.
1.2 msf
Net absorption returns to normal
Houston's industrial occupier demand stabilizes towards pre-pandemic norms with healthy positive net absorption in Q1 2025, driven by continued demand from logistics, distribution, and healthcare sectors.
13 msf
Construction activity slightly outpaces demand
Houston's industrial market in Q1 2025 experienced a rise in vacancy to 7.0% due to 3.0 msf of new deliveries from key developers. Notably, 13 msf of industrial space remains under construction.
6.4 msf
Leasing activity normalizes
Leasing activity has normalized, with 6.4 msf leased in Q1 2025, marking the lowest volume in nearly five years but aligning with pre-pandemic levels.
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