Houston industrial real estate market reports

Q2 2023

Houston's industrial market expanded significantly in the second quarter of 2023, with nearly 8 million square feet (msf) of new deliveries. This brings the total amount of product underway to 29.7 msf, but developers are beginning to slow construction activity in response to easing occupier demand and some financing challenges. Population increases coupled with elevated shipping activity through the Port of Houston have stimulated growth in both e-commerce and consumer products. 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. 


3.7 msf

Positive net absorption remains robust

Despite a decline from previous record levels, the Houston industrial market remains strong, with a healthy demand reflected by a positive net absorption of 3.7 msf.


Vacancy rate rises as new product comes online

Although the vacancy rate rose during the quarter, Houston's industrial market fundamentals remain strong, with vacancy still below the peak of 9.0% recorded in early 2021.  

28.7 msf

Construction pipeline slows down

Construction activity is slowing in response to easing occupier demand and some financing challenges.

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