Market Reports

Executive Summary Houston’s office market showed modest improvement during the second quarter, recording positive net absorption following several quarters of occupancy loss. The increase indicates that tenant move-ins modestly outpaced move-outs, promising stable fundamentals. The market remains highly bifurcated as more than 60% of the leased square footage was concentrated in newer Trophy and Class A properties with modern finishes. Commodity Class B and C properties will likely continue to face pricing pressure as they…

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…

Executive Summary The Houston industrial distribution market continued to demonstrate remarkable resilience during the second quarter of 2026, reinforcing its position as one of the nation’s strongest logistics markets. While the pace of expansion has moderated from the record-setting levels experienced over the past several years, market fundamentals remain exceptionally healthy. Leasing activity strengthened during the quarter, asking rents reached a new cyclical high, and tenant demand continued to absorb recently delivered speculative space. The…

OVERVIEW   Continued expansion and throughput growth remain key drivers of industrial demand across Southeast Houston Port Houston: Driving Industrial and Logistics Demand Port Houston remains a primary driver of Houston’s industrial market, supporting activity across logistics, distribution, import/export, and manufacturing sectors. Its scale, connectivity, and ongoing infrastructure investment continue to reinforce Houston’s role as a national freight hub, particularly across port-adjacent corridors. Channel Capacity and Terminal Efficiency Port Houston’s continued expansion and throughput growth…

Executive Summary Port and manufacturing driven demand and disciplined development continue to anchor Houston’s industrial market, with Southeast Houston remaining a key driver of long-term growth. Houston’s industrial distribution market entered Q1 2026 on stable footing, with balanced fundamentals supported by steady tenant demand, moderated construction activity, and pricing that has stabilized at an elevated baseline. The citywide weighted NNN asking rate increased to $0.67 per square foot, while vacancy declined to 6.2%, reflecting continued…

Executive Summary The Houston office market posted mixed results in Q1 2026, giving back some of the momentum built in recent quarters while still pointing to gradual improvement ahead. The gap between Class A and Class B rents remains historically wide, with Trophy office buildings continuing to push record rents. Leasing activity held steady, vacancy ticked up slightly, and net absorption swung back negative, with the CBD driving much of the pullback. Even so, rents…