Sky high absorption and leasing activity keepHouston industrial hot at midyear

2026 continues to be a strong year for the Houston industrial market, headlined by high absorption, lowered vacancy, and consistent deal volume. Net absorption for Q2 hit about 7 million sq. ft., lowering vacancy to 6.7% and heightening 2026 YTD absorption to about 11 million sq. ft. The Northwest recorded 2.3 million sq. ft. of net occupancy, while the North recorded 1.4 million sq. ft. Both delivery and under construction numbers decreased from Q1 to Q2; there were 5.8 million sq. ft. in deliveries, and 17.7 million sq. ft. is still in the development pipeline. Highlighted by Grainger’s completed distribution center, the pre-lease rate for deliveries sits at 42%.