Q1 2023: Houston Industrial Market Report
Rapid population growth, record activity at the port, and continued strength in the petrochemical industry fuels Houston’s industrial real estate market, which continues to outperform the city’s other sectors. Trailing 12-month absorption ranks among the highest in the country, even with a slight decrease in leasing volume this quarter. Developers attracted by the friendly business climate and affordable land prices have unleashed a wave of supply. In all, Houston will welcome more than 30 million square feet of inventory in the next year, the majority of which is unleased. Vacancy will likely continue to increase in the short-term as this space comes online, further weighing down rent growth that already lags behind the national average.