Occupier demand remains resilient through the first half of 2025

The Houston industrial market remained resilient during the first half of 2025; however, net absorption declined compared to the same period in 2024. Despite the slowdown, net absorption continued to remain positive, while leasing activity held firm, with more than 7.0 million square feet (msf) leased during the quarter. Given the amount of leasing observed, it is likely net absorption will remain positive in the near term, potentially increasing in the second half of this year. The Houston market demand outlook remains optimistic as its growing workforce, coupled with state and local incentives, continues to attract occupiers to the region. Technofil USA was among the most recent companies to benefit from local incentives, receiving an economic investment from the city for a new $22 million manufacturing facility in Humble, which is expected to bring 160 jobs to the area.

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