HOUSTON - eTradeWire -- OVERVIEW

PORT HOUSTON: DRIVING INDUSTRIAL AND LOGISTICS DEMAND
Port Houston remains the primary catalyst for Southeast Houston's industrial real estate market, supporting sustained demand across logistics, warehousing, distribution, import/export, and manufacturing. Its scale, multimodal connectivity, and continued infrastructure investment reinforce Houston's position as one of the nation's premier freight gateways, driving long-term industrial growth throughout the region.

CHANNEL CAPACITY AND TERMINAL EFFICIENCY
Continued investments in terminal modernization, channel improvements, and technology are enhancing throughput capacity, supply chain visibility, and operational efficiency across the Port. At the center of this network is the 52-mile Houston Ship Channel, the busiest waterway in the United States by tonnage. In 2023, the Channel handled 309.5 million short tons of cargo, representing approximately 12% of all U.S. waterborne trade, while Port Houston established a new record by handling 4.14 million TEUs in 2024, reinforcing its expanding role in global commerce. Port Houston continued its record-setting performance in 2025, handling more than 54.5 million short tons of cargo across its public terminals, a 3% increase from the prior year, while container volumes reached a record 4.3 million TEUs. These results reinforce the Port's expanding role in global trade and continue to support long-term industrial demand throughout Southeast Houston.

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MARKET CONDITIONS
Port-driven activity continues to anchor industrial demand within Southeast Houston, the region's most strategically important logistics corridor. As of Q2 2026, the submarket totaled approximately 86.3 million square feet of inventory, with direct vacancy at 11.3% and weighted NNN asking rents averaging $0.73 per square foot. Although vacancy has increased as recently completed speculative projects enter the market, leasing activity and net absorption continue to reflect healthy demand from logistics, manufacturing, and distribution users tied to Port operations. Looking ahead, Southeast  Houston remains one of the nation's most strategically positioned industrial submarkets. Continued Port Houston investment, resilient trade activity, and long-term population and economic growth are expected to support industrial demand as newly delivered space is absorbed through the balance of 2026.

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PORT HOUSTON'S GROWTH CONTINUES TO TRANSLATE DIRECTLY INTO INDUSTRIAL DEMAND, POSITIONING SOUTHEAST HOUSTON AS ONE OF THE MOST STRATEGICALLY IMPORTANT LOGISTICS CORRIDORS IN THE U.S.

The full Q2 2026 Port Houston Market Report is available here: https://www.lee-associates.com/houston/2026/07/16/port-houston-market-report-q2-2026/