SVN Research 

Market Spotlight - 2025 Q2 Industrial | Houston, TX Metro Area

July 28, 2025

In the second quarter of 2025, Houston’s industrial real estate market displayed solid momentum, characterized by a 7.1% vacancyrate and an average market rent of $9.40 per square foot. Annual rent growth stood at 2.2%, signaling stable demand, while the market absorbed 12.5 million square feet, outpacing the 19.4 million square feet under construction. The 12-month sales volume growth surged by 41.9%, reflecting heightened investor interest. Comparatively, the national industrial market showed a slightly higher vacancy of 5.4% and a market rent of $9.46, though with more modest annual rent growth of 1.7% and significantly lowerabsorption and construction metrics. Houston’s market cap rate of 8.4% suggests a higher yield environment than the national average of 9.6%, underlining its regional attractiveness amidst a backdrop of moderate economic indicators like 4.2% unemployment and 1.4% job growth locally.

About SVN | J. Beard Real Estate 

SVN | J. Beard Real Estate is an independently owned and operated SVN® office located in The Woodlands, Texas. The SVN® brand is a globally recognized commercial real estate entity united by a shared vision of creating value for clients, colleagues, and communities. Currently, SVN comprises over 2,000 advisors and staff working in more than 200 offices across the globe. SVN’s brand pillars represent the transparency, innovation and inclusivity that enable all our advisors to collaborate effectively with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN Advisors create outsized value for all stakeholders. For more information, visit www.jbeardcompany.com.

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