2026 News Archive

Houston's industrial vacancy rate has climbed to 7.3%, roughly 100 basis points above the 10-year average, as new supply has outpaced absorption for five consecutive quarters. Over 31 million SF is currently under construction 75% of it is still available for lease, with the pipeline heavily concentrated in big-box logistics products. Vacancy could rise another 100 basis points by early 2027 as more of this speculative development delivers.

Houston's office market is beginning to stabilize after several difficult years, with positive net absorption reaching a 10-year high and vacancy declining from its 2025 peak. The market-wide vacancy rate now sits at 19.9%, but newer office buildings are performing significantly better, highlighting a strong "flight to quality" trend. Demand is concentrated in high-end, amenitized buildings located in strong submarkets such as Katy Freeway East, The Woodlands, and parts of the CBD. While recovery is uneven and older commodity office buildings still struggle with elevated vacancy, the market appears to have reached an inflection point as previously vacant space begins to backfill and supply pressures remain limited