Colliers: 3Q2024 Houston Industrial Market Report 

HOUSTON – Colliers Houston Industrial Market Report shows positive results for 3Q2024 as demand outpaces supply, leading to a vacancy drop after several quarters of increases. 

Increased absorption outpaced the new supply for the first time in two years, pointing to a more stable overall market.  

Absorption of 5.7 million sf is up 27 percent over the previous quarter but below the 6.8 million sf from year over year.  

Construction at 15.2 million sf is up 30.2 percent from the second quarter but still down 35.9 percent from the 23.7 million sf underway during the same time last year.  

New supply of 2.8 million sf is at the lowest level since 2018, while leasing activity dropped to 8.7 million sf from last quarter’s 10.7 million sf.  

The overall vacancy rate dropped 40 basis points to 7 percent from the prior quarter, which compares to 6.6 percent vacancy year over year.  

Rents increased to $9.68 psf from $9.57 psf last quarter, representing a 4.8 percent growth rate year over year.