Quarterly Snapshot 4Q23 | Industrial | The Houston Industrial Market Is Performing Well
The Houston Industrial market continues to outperform other U.S. markets primarily due to high tenant demand. In 4Q23, the demand for industrial space in Houston increased quickly, reaching 10.2 million SF of transactional leasing activity. This was the highest amount of total space leased in any quarter of 2023, with most of the leases consisting of third-party logistics companies and manufacturers. Furthermore, the market's resilience persists with positive absorption continuing to be a highlight, reaching 4.2 million SF in 4Q23. This trend will more than likely continue throughout 2024, but could be outpaced by supply given the under-construction pipeline.