Quarterly Snapshot 1Q25 | Industrial | The Houston Industrial Market Signals Maturity, Not Weakness
Houston's industrial market remained resilient in the 1Q25, balancing a continued influx of new construction with sustained demand driven by long-term fundamentals such as port activity, population growth, and supply chain expansion. Leasing activity totaled approximately 6.4 million SF, a slight decline from the year prior, marking a return to more normalized levels following several years of exceptional performance. Leading demand came from logistics providers, e-commerce users, and energy-related firms. Net absorption for the quarter reached 1.3 million SF, indicating a steady but more deliberate pace of occupancy. While the market has cooled from its recent highs, tenant interest remains solid, particularly in well-positioned submarkets.