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Houston industrial demand outlook is optimistic seeing large deals and positive net absorption
Houston industrial demand continues to remain resilient, seeing positive net absorption of 9.9 million square feet (msf) year to date. While net absorption has declined compared to prior year figures, it is expected to continue trending positive given the leasing activity seen in 2025. The Houston industrial market saw several large deals, such as PepsiCo signing a lease for approximately 1.1 msf and Panelmatic signing a lease for approximately 728,000 square feet (sf). Given the amount of leasing observed, it is likely net absorption will remain positive in the near term, potentially increasing over the next few quarters. The Houston market demand outlook remains optimistic as it continues to attract occupiers to the region. Eli Lilly confirmed it will be building a $6.50 billion manufacturing facility in the Northeast submarket at Generation Park. The project is estimated to create 4,000 construction jobs and over 600 new, high-wage, permanent jobs.