Avison Young releases Fourth Quarter 2023 Industrial Market Report for Houston

Avison Young releases Fourth Quarter 2023 Industrial Market Report for Houston January 10, 2024

Record completions overshadow market cooldown

Houston, TX – Avison Young today released its Fourth Quarter 2023 Industrial Market Report for Houston. Construction activity experienced a dramatic surge in 2023, with project completions soaring by a staggering 41% compared to 2022. This resulted in a record-breaking 32.4 mission square feet (msf) of new space added in 2023, slightly surpassing the previous record set in 2020 by 8,000 sf.

Leasing activity has moderated but remains robust with over 37 msf leased in 2023.The significant influx of new industrial construction deliveries has pushed the total vacancy rate up 170 basis points year-over-year to 7.3% but remains below its peak in 2020.

“The construction pipeline is decelerating in response to eased occupier demand and financing challenges,” said Drew Coupe, Principal and industrial tenant representation specialist with Avison Young. “However, many large retailers and third-party logistics (3PL) companies continue to proceed with growth plans to support robust consumer growth.”

Total net absorption for 2023 registered 19.5 msf, a 39% decline from the 2021 peak, reflecting a return to pre-pandemic levels. While the fourth quarter of 2023 saw a steeper decline of 58% compared to the third quarter, this trend is a welcome course correction.

“After the extraordinary surge of activity over the past few years, the market has started to stabilize,” said Rand Stephens, Principal and industrial market specialist with Avison Young. “This stabilization suggests a healthy and sustainable trajectory for the industrial sector, laying the groundwork for long-term growth built on solid fundamentals.”

About Avison Young

Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. As a private company, our clients collaborate with an empowered partner who is invested in their success. Our integrated talent realizes the full potential of real estate by using global intelligence platforms that provide clients with insights and advantage. Together, we can create healthy, productive workplaces for employees, cities that are centers for prosperity for their citizens, and built spaces and places that create a net benefit to the economy, the environment and the community.

Avison Young is a 2022 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for 11 consecutive years.

For more information: