Latest Quarterly Snapshot

In 2025, the Texas land market transitioned from its post-pandemic surge into a more disciplined, strategy-driven environment, with Houston leading the state in targeted growth and selective deal-making. Demand remained steady across high-growth suburban corridors such as Fort Bend, Waller/Hockley, Rosenberg, and along the Grand Parkway, where builders and developers continued to pursue developable tracts. Pricing remained stable for well-located tracts; however, longer marketing periods, extended feasibility timelines, and more creative deal structures, such as phased takedowns and infrastructure participation, became increasingly common. While institutional players approached acquisitions cautiously, private capital, family offices, and local developers stayed active, especially near logistics corridors, master-planned communities, and high-visibility infill pockets. With stabilizing interest rates improving underwriting confidence and long-term population and job growth fundamentals intact, Texas and Houston overall saw a land market defined not by retreat, but by disciplined capital, patient timelines, and strategic positioning for the state's next growth cycle.

The Houston retail market continued to perform steadily in 3Q25, supported by ongoing population growth and consistent consumer activity. Vacancy remained in the mid-5% range, signaling balanced supply and demand, while net absorption exceeded 800,000 SF for the quarter. New construction deliveries slowed to approximately 700,000 SF and the development pipeline contracted, helping preserve occupancy and mitigate oversupply concerns. Asking rents held firm on average at $24 pSF NNN throughout the Houston region, with modern, well-located centers commanding premium rates. Overall, Houston's retail sector remains well-positioned, driven by strong leasing momentum, disciplined development, and resilient consumer fundamentals.

Houston's industrial market remained one of the nation's most dynamic in 3Q25, with steady leasing activity and 10.9 million SF absorbed during the quarter. The metro's inventory now totals roughly 838 million SF across more than 20,000 buildings. However, new supply has consistently outpaced demand over the past three quarters, a trend expected to continue into 2026. This has led to modest upward pressure on vacancy, which currently stands at 7.4%. Even with this gradual softening, Houston's industrial fundamentals remain sound, supported by strong tenant demand and long-term economic growth drivers.