Q1 2026 Houston Industrial Market Report
Houston’s industrial market has entered 2026 on solid footing. Total inventory across
all industrial product types reached 719 million square feet at the close of the quarter, a gain of 4.98 MSF from Q4 2025 as new deliveries continued at an elevated pace.
Demand remains intact as net absorption held firmly positive at 4.3 MSF for the quarter and leasing activity totaled 9.9 MSF. The under-construction pipeline
continued to expand to 26 MSF, a 46% surge from the same period in 2025. These
figures reflect a market that continues to attract consistent occupier demand even as
a historically large speculative pipeline works through the lease-up process.
Given the substantial group of new deliveries with limited pre-leasing, vacancy edged up quarter-over-quarter to 7.6% from 7.5% in the prior quarter. This is an ongoing trend, as vacancy is now 70 basis points above the 6.9% posted one year earlier.
Total availability reached 10.6%, the highest level since the Pandemic. Average asking rents posted a 9.9% gain year-over-year, underscoring that the meaningful gains of the cycle remain largely intact even as some pricing pressure builds in select segments.
all industrial product types reached 719 million square feet at the close of the quarter, a gain of 4.98 MSF from Q4 2025 as new deliveries continued at an elevated pace.
Demand remains intact as net absorption held firmly positive at 4.3 MSF for the quarter and leasing activity totaled 9.9 MSF. The under-construction pipeline
continued to expand to 26 MSF, a 46% surge from the same period in 2025. These
figures reflect a market that continues to attract consistent occupier demand even as
a historically large speculative pipeline works through the lease-up process.
Given the substantial group of new deliveries with limited pre-leasing, vacancy edged up quarter-over-quarter to 7.6% from 7.5% in the prior quarter. This is an ongoing trend, as vacancy is now 70 basis points above the 6.9% posted one year earlier.
Total availability reached 10.6%, the highest level since the Pandemic. Average asking rents posted a 9.9% gain year-over-year, underscoring that the meaningful gains of the cycle remain largely intact even as some pricing pressure builds in select segments.