Market Reports

Executive Summary Houston’s retail market maintained healthy fundamentals during Q3 2026, supported by stable occupancy, continued rental growth, and positive tenant demand. Direct vacancy remained at 5.6% for the second consecutive quarter, while the average direct asking NNN rent increased to a record $22.03 per square foot, approximately 8.1% above Q3 2025. Retail demand strengthened during Q3 2026, with net absorption reaching 551,122 square feet, a significant improvement from 39,756 square feet in the previous…

OVERVIEW   PORT HOUSTON: DRIVING INDUSTRIAL AND LOGISTICS DEMAND Port Houston continues to serve as a critical gateway for international trade and one of Southeast Houston’s most important long-term industrial demand drivers. Its scale, multimodal connectivity, diverse cargo base, and continued infrastructure investment support logistics, distribution, manufacturing, energy, and import and export activity throughout the region.   CHANNEL CAPACITY AND TERMINAL EFFICIENCY The 52-mile Houston Ship Channel remains the foundation of Houston’s maritime economy and…

EXECUTIVE SUMMARY   Houston’s 3rd quarter office market delivered an uneven result across classes. With virtually no city-wide net absorption and change in average rental rates, the CBD continues to hemorrhage tenants with quarterly negative net absorption of 234,740 square feet while suburban office buildings accounted for 100% of the quarter’s positive net absorption of 195,002 square feet. What’s more, 100% of the broader market YTD net absorption of 328,530 square feet can be traced…

EXECUTIVE SUMMARY   Houston’s industrial distribution market delivered a record-breaking third quarter of 2026, demonstrating the remarkable depth and resilience of tenant demand across the region. Q3 2026 net absorption reached a record 10.0 million square feet, while leasing activity climbed to a record 10.4 million square feet, marking an exceptional quarter for Houston’s industrial market. The momentum was equally impressive compared with Q2 2026. Net absorption increased approximately 49% quarter over quarter, while leasing…

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…