2024 News Archive

During the 3Q24, Houston's industrial market maintained a consistent rhythm, showing minor significant changes or developments. Nearly all lease agreements were for properties smaller than 300,000 SF, and only a limited number of large transactions occurred. Furthermore, in the first three quarters of 2024, there were only 9 million SF of construction starts, the lowest amount seen since 2012. With construction costs remaining high, new groundbreakings are projected to decline further throughout the remainder of the year, potentially easing supply pressures in the next few years.

In 2Q24, the Houston Industrial market continued to thrive due to sustained tenant demand, which fueled active leasing activity and led to several large deals being finalized. This momentum resulted in positive net absorption, with 5.5 million SF of space absorbed. While net absorption has remained relatively steady on a year-over-year basis, it showed an uptick compared to the previous quarter. Moreover, with a substantial 27.6 million SF of tenant demand in Houston, the market is set for continued expansion. This persistent industrial activity is anticipated to further decrease vacancy rates as 2024 progresses. Additionally, economies of scale play a significant role, as tenants who lease larger spaces often secure lower per-square-foot rates. This makes leasing more industrial space a cost-effective option for tenants.