Big box leases driven by e-commerce no longer dominate industrial demand in Houston

Bar chart of Houston industrial leasing activity by deal size from 2016 to 2023

The highest leasing activity by square footage has been for deals between 100k and 249k sf, which account for 35.5% of Houston’s industrial total leasing volume since 2016.

When analyzing the deal counts since 2016, mid-sized lease transactions signed between 50k and 99k sf have accounted for 55.2% of all deals, compared to 34.4% for 100k–249k sf deals.

Leases signed for 500k to 749k sf make up just 7.5% of the deals, while leases exceeding 750k sf constitute only 1.5%.

The number of lease transactions peaked in 2022, with 50.2% of the activity involving 50k–99k sf deals while 100k–249k sf deals comprised 37.7% of the activity.

Despite a surge in demand for larger spaces exceeding 500k sf driven by e-commerce during the pandemic, the market is returning to normalcy, and the consistent trend remains focused on leasing spaces between 50k and 250k sf.

Get market intel

US-TX-HOU Houston