Houston industrial demand is as high as it's been in "years," according to a new market report from CBRE. Net absorption in the fourth quarter totaled 8.3 million square feet, which is more than triple the amount seen in the previous three months and less than the four million square feet seen in the same period a year ago.
"After several significant move-ins around the region, net absorption in the fourth quarter was the highest seen in recent memory," CBRE explained.
There were a total of 31.3 million square feet of leases seen in 2025, which is up 800,000 square feet year-over-year. About a third of the fourth quarter signings (under seven million square feet) occurred in the Southwest submarket. SEG Solar stood out with its 425,000 square foot lease deal.
Vacancy declined by 90 basis points quarter-over-quarter and was down slightly year-over-year.
In 2025, Houston's industrial sector saw 17.2 million square feet of deliveries, with another 21.5 million underway. Groundbreakings picked up in the last few months of the year, according to CBRE. But that trend is expected to slow down.
"Total availability will likely lessen slightly in 2026 as groundbreakings level off and leasing activity persists," CBRE said.
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