Market Report · Q3 2026

Houston Industrial Distribution

Houston's industrial distribution market delivered a record-breaking third quarter. Net absorption reached a record 10.0 million square feet and leasing climbed to a record 10.4 million square feet, while direct vacancy fell 120 basis points to 5.2%.

10.0M SF

Net absorption

Record quarter; 6.7M SF last quarter

10.4M SF

Leasing activity

Record quarter; 7.6M SF last quarter

5.2%

Direct vacancy

6.4% last quarter

$0.71

NNN asking rate / SF

$0.79 last quarter

5.9M SF

Deliveries

6.4M SF last quarter

13.5M SF

Under construction

15.9M SF last quarter

For the conversation

Absorption moved ahead of new supply.Year to date absorption of 23.1 million SF surpassed the 21.4 million SF delivered through September, a shift from the first half of the year.
Major logistics corridors led the way.Southeast Houston led the quarter with about 3.4 million SF of leasing, followed by the Northwest at 2.3 million SF, together about 56% of the total.
Development is disciplined.About 83% of the 13.5 million SF under construction sits in the Northwest, North, Southeast, and South submarkets, where demand and infrastructure are established.

The takeaway

Demand remains strong. Supply is becoming more disciplined. Houston is still growing.