Avison Young releases Fourth Quarter 2025 Industrial Market Report for Houston
Industrial market ends 2025 on strong footing
Houston, TX – Avison Young, a global real estate advisory firm, today released its Fourth Quarter 2025 Industrial Market Report for Houston. Houston’s industrial market closed 2025 with robust performance, posting 12.6 million square feet (msf) of positive absorption, including a 4 msf surge in the fourth quarter, the strongest quarter of the year. This growth was fueled by sustained demand from logistics, distribution, and energy users, even as 18.6 msf of new space entered the market, nudging vacancy up by 66 basis points to 7.3%.
Developers remain bullish, with 21.1 msf under construction and nearly a quarter pre-leased, signaling confidence in long-term fundamentals. Mid-bay facilities (100,000–500,000 sf) dominated 2025 construction activity with 16 msf, while big-box development (less than 500,000 sf) slowed to 3.4 msf, down from 17.7 msf in 2022.
Leasing activity was led by logistics/distribution (5.2 msf), followed by tech (4.2 msf) and engineering/construction (3.3 msf).
“Houston’s industrial market continues to demonstrate resilience and adaptability, with mid-bay product leading the charge as occupiers seek flexibility and proximity to key distribution corridors,” said Drew Coupe, Principal at Avison Young. “Additionally, manufacturing demand remains very strong and with record low vacancy, developers are hustling citywide to satisfy this need.”
Port Houston reinforced the region’s industrial strength, handling 4.3 million TEUs in 2025, a 4.5% year-over-year increase.
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