THREE TRENDS SHAPING HOUSTON’S INDUSTRIAL MARKET IN 2026
Meadow Edge Commerce Center – A 13 Building Development With Harbor Capital
HOUSTON, TEXAS – February 10, 2026 – Mary Doetterl, Research Director, Lee & Associates – Houston
As Houston’s industrial distribution market closed out 2025, conditions pointed toward a year of stability, discipline, and targeted growth. Rather than rapid expansion, the market is entering 2026 with balanced fundamentals and clear directional trends. Three themes are expected to shape industrial activity across the metro in the year ahead.
1. Manufacturing and Office-Warehouse Demand Is Gaining Momentum
While logistics users remain a core driver of activity, demand from manufacturing, light assembly, construction, and infrastructure-related users is becoming increasingly visible. Tenants are prioritizing flexible facilities with functional office components, modern clear heights, and adaptable layouts that support both production and distribution needs. “Manufacturing and office-warehouse users are becoming a more important part of the demand mix,” said Mary Doetterl, Research Director at Lee & Associates Houston. “Tenants are looking for buildings that allow them to consolidate operations, support light production, and remain flexible as supply chains continue to normalize.”
2. Leasing Activity Continues to Concentrate in Core Logistics Corridors
Houston’s Northwest, North, and Southeast submarkets continue to capture the majority of leasing activity, supported by strong highway access, labor availability, and proximity to Port Houston. Cross-dock facilities remain a key driver of large-format deals, while tenants increasingly consider phased occupancies, pre-leasing, and build-to-suit options as availability tightens for large contiguous spaces.
3. Development Remains Active but Highly Disciplined
Approximately 18.9 million square feet remains under construction, yet development is increasingly aligned with real tenant demand rather than speculative expansion. New projects are skewing toward office-warehouse and light manufacturing formats, reflecting evolving occupier preferences and a more measured capital environment.
“The fundamentals supporting Houston’s industrial market remain exceptionally strong,” added Doetterl. “With continued investment in infrastructure, growing manufacturing and logistics activity, and a disciplined development environment, Houston is well-positioned for sustained growth and long-term opportunity in 2026 and beyond.”
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.