Quarterly Snapshot 2Q24 | Industrial | The Houston Industrial Market Sees Record Growth
In 2Q24, the Houston Industrial market continued to thrive due to sustained tenant demand, which fueled active leasing activity and led to several large deals being finalized. This momentum resulted in positive net absorption, with 5.5 million SF of space absorbed. While net absorption has remained relatively steady on a year-over-year basis, it showed an uptick compared to the previous quarter. Moreover, with a substantial 27.6 million SF of tenant demand in Houston, the market is set for continued expansion. This persistent industrial activity is anticipated to further decrease vacancy rates as 2024 progresses. Additionally, economies of scale play a significant role, as tenants who lease larger spaces often secure lower per-square-foot rates. This makes leasing more industrial space a cost-effective option for tenants.