Latest Insights

During the 3Q24, Houston's industrial market maintained a consistent rhythm, showing minor significant changes or developments. Nearly all lease agreements were for properties smaller than 300,000 SF, and only a limited number of large transactions occurred. Furthermore, in the first three quarters of 2024, there were only 9 million SF of construction starts, the lowest amount seen since 2012. With construction costs remaining high, new groundbreakings are projected to decline further throughout the remainder of the year, potentially easing supply pressures in the next few years.

In 3Q24, the Houston office market exhibited several promising trends, including improved net absorption, stable rental rates at $29.88pSF, and a slight decrease in the overall vacancy rate which stands at 18.9%. Urban offices drove the demand in Houston as companies are wanting to be closer to their employees. Furthermore, in 3Q24, the Central Business District (CBD) led leasing activity, accounting for 32% of the total deal volume.