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Pre-leased deliveries drive strong absorption while fundamentals remain balanced
Houston's industrial market posted a strong second quarter, recording 6.7 million square feet (msf) of net absorption as preleased buildings delivered. Despite elevated deliveries, the vacancy rate held at 7.4%, remaining largely unchanged since Q3 2025 as healthy tenant demand continued to offset new supply. Notable completions included a 425,360-square-foot (sf) facility fully leased to SEG Manufacturing, Inc. at 20003 Old Mueschke Road. Another notable delivery was the 420,510-sf building at 5300 East McKinney Road, which was pre-leased to Supply Chain Management, LLC. Industrial deliveries now total 10.4 msf year to date, highlighting the market’s vacancy rate stability as new pre-leased product delivers.