Quarterly Update: Industrial Market

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Demand for industrial and warehouse space in Houston has fluctuated over the past several years. The vacancy rate fell to 5.0 percent in Q4/22, the lowest level recorded during the five-year period shown, amid strong absorption and elevated construction activity. In Q2/26, the vacancy rate edged down from 7.4 percent to 7.3 percent, marking its first quarterly decline since Q4/24. Although the improvement was modest, it coincided with stronger net absorption during the quarter.