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 industrial market closed the 4Q25 on solid footing, supported by ongoing tenant demand and rental rates that continued to reach new highs. While vacancy edged up to 7.2% and leasing activity slowed on a quarterly basis, annual leasing volume remained higher year over year. Development activity continued to build, with the construction pipeline expanding compared to both the previous quarter and last year, despite a slight dip in quarterly deliveries. Average asking rents increased quarter over quarter and year over year, reinforcing strong pricing momentum. On the investment side, improving capital market conditions, including easing interest rates and firming cap rates, have contributed to a more optimistic outlook.