ICOnic News | Houston Industrial Market: Still Strong, Just More Selective
HOUSTON INDUSTRIAL MARKET: STILL STRONG, JUST MORE SELECTIVE
Houston's industrial vacancy ticked up slightly to just over 7% in January 2026, driven primarily by an influx of new supply, largely big-box logistics facilities, combined with slower absorption. Even so, rents are expected to continue rising in 2026, particularly for small-bay industrial properties, which continue to outperform the broader market.
Overall, the Houston industrial market remains fundamentally strong, and we anticipate an active year ahead, while remaining mindful of growing concerns around slowing U.S. economic growth.
On the investment side, small and private investors continued to drive industrial sales activity throughout 2025, a trend expected to carry into 2026 as transaction volume is projected to increase.
As leases come up for renewal, many landlords are resetting rents to current market levels, pushing some tenants back into the market in search of more cost-effective options that can be delivered within 90-120 days. Landlords positioned to move quickly are well-situated to capture this demand. However, many tenants are ultimately choosing to renew in place, even at higher-than-historical rent increases, due to the limited availability of comparable space.
For tenants that do pursue relocating, tenant improvement (TI) allowances have become a top priority. Many are willing to commit to longer lease terms to secure necessary improvements, despite broader economic uncertainty.
Adding another layer of complexity, several smaller jurisdictions across the Houston region are tightening regulations around approved uses, code compliance, fire and life safety standards, and new city beautification initiatives. This has created a funneling effect, with tenants concentrating their searches on properties where their operations are clearly permitted.
- Kelsey Davis, ICO Associate
2025 YEAR IN REVIEW
As we reflect on 2025, we are proud of the growth, milestones, and moments that defined the year at ICO Commercial.
This year marked an exciting chapter for our firm as we unveiled a new brand identity, welcomed new team members, and expanded our portfolio.
We also celebrated leadership from within, focused on giving back, and strengthening our culture.
GETTING TO KNOW ROXANA BLANCO
1. What movie or TV show have you watched more times than you'd like to admit?
"Forest Gump because some classics never get old."
2. What was your very first job?
"Universal Studios (California), where the magic was real and the work ethic started early."
3. What's the most memorable deal you've worked on and why?
"My first commercial land deal: 33 acres. It was the moment I truly understood the scale, strategy, and opportunity that separates commercial from residential real estate."
4. What CRE tool, resource, or data source can you not live without?
"LandID and a few other tricks up my sleeve!"
5. Summary of your business and who an ideal client/prospect might be?
"I work with clients seeking land and commercial opportunities, including commercial development, residential development, and industrial projects."
