HOUSTON - eTradeWire -- "While traditional logistics activity continues to underpin Houston's industrial market, the notable rise of high-tech manufacturing demonstrates Houston's capacity to quickly adapt and scale alongside modern industrial demands." - Danny Rice | President

Market Trends

• New supply (3.9M SF) narrowly outpaced absorption (3.7M SF) in the first quarter as the Houston Industrial market continues to grow alongside robust tenant demand.
• Construction activity climbed to 27.9M SF, marking a 13.7% increase from last quarter and a significant 54.9% jump year-over-year (YoY).
• Leasing activity reached 8.4M SF, with the Southwest (28.3%) and Southeast (23.5%) submarkets driving over half of the total volume.
• Overall vacancy held steady at 7.5% quarter-over-quarter (QoQ), representing a 70-basis-point (bps) increase YoY.
• Average asking rents contracted QoQ to $10.04 but are up 10.1% from a year ago.
• Sublease availability reached 6.2M SF in Q1 2026, up from 5.4M SF last quarter and 4.5M SF a year ago.

Read the full report: colliers.com/houstonresearch

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