Houston Industrial Market Report

Port strength and infrastructure upgrades sustain positive momentum. The Port of Houston carried its strong performance from 2024 into this year, with trade policy shifts having limited impact on port activity through June. A diverse mix of cargo types has helped insulate the port from steeper volume declines, especially compared with West Coast hubs more reliant on Chinese-related trade. This diversity also reduces vulnerability to tariffs targeting specific categories of goods. The metro’s industrial market resilience is further reinforced by infrastructure expansion at George Bush Intercontinental Airport, which includes enhanced cargo capacity and freight-related runway improvements. These strengths, combined with favorable employment and population trends, have supported consistent demand. As such, net absorption will keep pace with new supply across 2024 and 2025, positioning Houston as one of only two major industrial markets to record vacancy compression in both years.