Figures
Houston Industrial Figures - Q1 2025
April 1, 2025 5 Minute Read
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- Houston’s industrial market recorded 791,664 sq. ft. of positive net absorption in Q1 2025, reflecting steady tenant demand despite broader economic uncertainty. Move ins from larger tenants were absent this quarter, with positive absorption driven by smaller deals.
- Vacancy ticked up to 6.2%, marking a 60-basis point (bps) increase from the previous quarter. As the market digests new deliveries and in the face of a diminishing construction pipeline, rental rates are expected to trend upwards.
- The construction pipeline remains active with 11 million sq. ft. currently underway at 9.8% preleased. Developers are proceeding cautiously as financing challenges persist.
- The Port of Houston started the year strong, moving 356,407 twenty-foot equivalent units (TEUs) in January, marking a 7% increase compared to the last year. This was the busiest January on record for cargo activity at the Port. To support this growth, continuous investments include ongoing construction at Bayport Container Terminal, with Wharf 7 completing in 2026 and Wharf 1 in 2027, along with the arrival of 8 ship-to-shore cranes and 16 rubber tire gantry cranes in 2026.