Houston industrial market shows its resilience with net absorption remaining positive

The Houston industrial market continues to remain resilient, boasting positive net absorption for Q2 2024, at 5.5 million square feet (msf). Net absorption has remained relatively flat year over year; however, it has increased compared to the prior quarter. Leasing activity remains active with large deals still being done, like Integra Mission Critical LLC signing a lease for approximately 1.2 msf and PGS signing a lease for approximately 372,000 square feet (sf). Going forward, given the active leasing activity, net absorption will likely continue to trend positively. Vacancy saw a slight quarter-over-quarter increase of 20 basis points (bps) increasing to 7.5%. The Northeast submarket saw the largest quarter-over-quarter increase in vacancy, which can be attributed to the 2.7 msf delivered within the submarket. Vacancy is anticipated to continue to remain high as new spec development is delivered.

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