Houston industrial real estate market reports

Q4 2023

Houston's industrial market expanded slightly in the fourth quarter of 2023, with nearly 5 million square feet (msf) of new deliveries, pushing the year-end total to a record-breaking 32.4 msf. This brings the total amount of product underway to 20.1 msf while construction starts have plummeted due to many developers placing construction projects on hold in response to easing occupier demand and financing challenges. Population increases coupled with elevated shipping activity through the Port of Houston continues to stimulate growth in both e-commerce and consumer products. As a result, many large retailers and third-party logistics (3PL) companies continue to proceed with growth plans to support robust consumer growth despite lingering global economic uncertainty. 
19.5 msf       

Positive net absorption decelerates

Net absorption has cooled by 39% from its 2021 peak, a significant moderation but still soars 80.6% above the 10-year pre-pandemic average.


Vacancy rate rises as new product comes online

Although the vacancy rate rose during the year, Houston's industrial market fundamentals remain strong, with vacancy still below the peak of 8.6% recorded in early 2020.  

32.4 msf    

Record completions overshadow market cool down

Record-breaking deliveries mask a slowdown in construction activity, fueled by easing demand and some financing challenges.

Your source for the latest Houston industrial real estate reports

Stay on top of current trends affecting the industrial real estate sector in Houston. Gain an overall better understanding of Houston's industrial real estate market conditions, so you can better formulate strategies to overcome any obstacle and know how to best invest in industrial real estate in Houston.

Here, you’ll always find the latest industrial real estate market news so you can stay ahead. Come back often to see expert insights on the current and future of Houston's industrial real estate market.

Get the latest Houston industrial market reports right in your inbox