Houston industrial market report

Houston’s industrial market recorded 5.8 million square feet (msf) of positive net absorption in Q2 2026, as major move‑ins, most notably Applied Optoelectronics and QTS, helped soften vacancy rates. Construction remained steady with 11.2 msf delivered YTD. The development pipeline totals 20.5 msf. Continued positive absorption is reducing available inventory, indicating the market is moving toward equilibrium as fewer new projects enter the pipeline. Port Houston remains a key demand driver, handling 4.3 million twenty-foot equivalent units (TEUs) over the past year, a 5% increase reinforcing regional logistics activity.