Houston industrial market report

Houston’s industrial market finished 2025 with solid footing, driven by strong Q4 absorption, the highest of the year. Demand held steady across logistics, distribution, and energy users, even as 18.6 msf of new space came online and nudged vacancy up 66 basis points. Developers aren’t slowing down, with 21.1 msf under construction and nearly a quarter pre-leased, signaling confidence in long-term growth. Large move-ins from Foxconn and PepsiCo boosted absorption totals, underscoring continued commitment from major occupiers. Port Houston handled 4.3 million TEUs over the past year, up 4.5%, reinforcing the region’s role as a trade and manufacturing hub. Heading into 2026, fundamentals remain healthy, backed by port trade and manufacturing strength.