Inside the Warehouse of the Future: How Houston Is Becoming a Logistics Tech Hub
Port 99 is a premier 1.28 million square foot industrial distribution hub at the gateway to Port Houston, delivered in Q3 2024 by Provident Realty Advisors. Leasing activity is led by Justin Tunnell and Richard Glass of Lee & Associates.
June 2025 | Mary Doetterl, Research Manager, Lee & Associates – Houston
Houston has long been defined by its energy industry and global shipping routes. But now, a quieter evolution is positioning the city as a rising logistics technology hub and industrial developers are racing to keep up.
With e-commerce growth, reshoring trends, and increasingly tech-savvy tenants, Houston’s warehouses are becoming more than just storage, they’re becoming smart logistics centers. New developments across the region are integrating advanced features like robotics-ready layouts, IoT-enabled systems, and increased power infrastructure to support automation and EV fleets.
A prime example is Port 99 Distribution Center in Baytown, a strategically located industrial development near the Port of Houston, major rail lines, and key freeways. The project is being developed and leased by Provident Realty Advisors, with Justin Tunnell, Principal at Lee & Associates, leading the leasing effort.
“Tenants today are asking not just about square footage, but about functionality, power capacity, and how fast they can be up and running,” says Tunnell. “At Port 99, we’ve prioritized access and adaptability it’s where location meets logistics intelligence.”
According to Mary Doetterl, Research Manager at Lee & Associates, the Southeast Houston submarket continues to show strong fundamentals. As of Q1 2025, the vacancy rate stands at 7.0%, with more than 5.5 million SF under construction set to deliver this year. Already, the market has seen 1.2 million SF of new leasing activity and nearly 1 million SF of positive absorption.
Developers are responding with designs that accommodate higher racking systems, expanded loading infrastructure, and automation-ready features. As the Port of Houston continues to invest in infrastructure, Houston is becoming a magnet for next-generation logistics operations.
The future of industrial real estate is intelligent, connected, and fast and Houston, with projects like Port 99, is building that future today.
About Lee & Associates – Houston
Lee & Associates – Houston is a fully-integrated commercial real estate company with unrivaled market knowledge and an unwavering commitment to integrity and excellence. Our business-minded brokers specialize in office, industrial, and land real estate investments. Lee & Associates – Houston is part of a nationwide network of brokers in more than 80 offices in North America. The brokerage is uniquely qualified to support our client’s real estate needs in Houston, across Texas, and throughout the US. For more information, visit lee-associates.com/houston.