Strong absorption supports lower vacancy levels despite elevated deliveries

Houston’s industrial market posted another strong quarter in Q3 2026, recording 7.5 million square feet (msf) of net absorption and bringing year-to-date absorption to 17.8 msf, more than double the 9.4 msf recorded during the same period last year. The vacancy rate declined to 7.2%, down 30 basis points (bps) year over year and 20 bps from the previous quarter, as healthy occupier demand continued to absorb new supply. Strong absorption during the quarter can be attributed in part to leases signed earlier in the year beginning occupancy, including T1 Energy’s 627,130-square-foot (sf) commitment in the Southeast submarket.

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