2025 News Archive

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.

In 4Q24, the Houston Industrial market saw a shift as demand grew and supply became increasingly constrained. The vacancy rate decreased by 60 basis points, ending the year at 6.2%, while the availability rate dropped by 40 basis points to 7.4%. An influx of international businesses into the region has further fueled this growth, with Houstona€™s favorable location and economic opportunities drawing attention. The rise in tariffs on foreign goods has also encouraged companies to seek local solutions. In the fourth quarter alone, net absorption totaled 4.8 million SF, bringing the annual total to 21 million SF, reflecting a strong and active market.