---
title: "Houston Industrial Market Update: Q3 2026 Vacancy, Rents"
description: Houston industrial vacancy, absorption, rents and construction for Q3 2026, compared across CBRE, Cushman & Wakefield, Colliers and Partners.
image: https://www.roesingercre.com/hs-fs/hubfs/AI-Generated%20Media/Images/Modern%20Warehouse%20Aesthetic.png
---

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Market data · Q3 2026

# Houston industrial market update

Houston industrial vacancy held near 6.3% in Q3 2026 as leasing hit its highest level since early 2022 and absorption rose for a third straight quarter. Asking rents set a record.

By **Zach Roesinger**, Designated Broker, Roesinger LLCUpdated October 12, 2026[Share on LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.roesingercre.com%2Fresources%2Fhouston-industrial-market)[Post on X](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.roesingercre.com%2Fresources%2Fhouston-industrial-market&text=Houston+industrial+market+update&via=LandmanZachATX)

**Short answer (Q3 2026):** Houston industrial vacancy is roughly 6% to 7.5% depending on the source, and it is flat to lower. CBRE reported 6.3% vacancy in Q3 2026, 7.2 million square feet of net absorption, about 18 million square feet absorbed year to date, and 18.4 million square feet under construction. Cushman & Wakefield put average asking rent at a record $8.16 per square foot. Houston is one of the tighter big industrial markets in Texas.

## The numbers, by source

Each brokerage tracks a different inventory and counties, so headline vacancy differs by about a point. CBRE and Cushman & Wakefield have released Q3 2026; Colliers and Partners figures are their latest published quarter. The direction is consistent: strong demand, vacancy steady or falling.

| Source | Quarter | Vacancy | Trend noted |
| --- | --- | --- | --- |
| [CBRE](https://www.cbre.com/insights/figures/houston-industrial-figures-q3-2026) | Q3 2026 | 6.3% | Vacancy and availability both declined on 7.2 MSF of absorption |
| [Cushman & Wakefield](https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/houston-marketbeats/industrial) | Q3 2026 | 6.3% | Flat from Q2, up 20 bps year over year; leasing highest since Q1 2022 |
| [Colliers](https://www.colliers.com/en/research/houston/q2-2026-houston-industrial) | Q2 2026 | 7.2% | Down 40 bps in the quarter; absorption at a four-year high |
| [Partners](https://partnersrealestate.com/research/houston-industrial-q2-2026-quarterly-market-report/) | Q2 2026 | 7.4% | Down 24 bps from Q1; availability 8.5% |

## What drove the quarter

- **Big leases came back.** Cushman & Wakefield counted 14.6 million square feet of leasing, the most since Q1 2022, including twenty deals of 250,000 square feet or more that made up about two-thirds of volume.
- **Absorption kept climbing.** CBRE reported 7.2 million square feet of net absorption; Cushman & Wakefield reported 7.3 million and its third straight quarterly increase.
- **The Southeast led.** Both firms had the Southeast at the top for absorption, with CBRE crediting it with 2.3 million square feet and the North and South each above 1 million.
- **Supply is mostly speculative.** Cushman & Wakefield's pipeline eased to 19.6 million square feet from 23.0 million, with speculative product about 94% of it; CBRE's narrower count was 18.4 million square feet.
- **Rents hit a record.** Cushman & Wakefield's average asking rent rose 3.8% in the quarter to $8.16, with the North and Northwest posting the strongest annual growth.

## What it means for you

### Tenants

Houston is not a soft market. Large users still have options in new speculative buildings in the Northwest and North, but well-located infill space is tighter, and the Southwest commands the highest asking rents. Expect rising asking rents and shorter free-rent packages than a year ago. Begin renewals 12 to 18 months out, and compare the cost of staying with the real cost of moving, including racking, power, and downtime. Smaller flex and shop users face a different market than the big-box numbers above, so ask for a survey of your size range.

### Owners

Record rents and low vacancy support pushing rents at rollover. The risk is concentrated in submarkets where speculative product is delivering; Cushman & Wakefield also reported sublease availability rising to 5.0 million square feet, or 0.8% of inventory. If you own an older building competing with new product, price to current deals, not last cycle's peak. Thinking about a sale? See our guide to [selling commercial property in Texas](https://www.roesingercre.com/resources/selling-commercial-property-texas?hsLang=en).

### Buyers and investors

Houston's mix of energy, petrochemical, port, and consumer distribution demand gives it a broader user base than its reputation suggests. Underwrite to signed-deal rents, stress-test lease-up in submarkets with heavy speculative deliveries, and compare the going-in [cap rate](https://www.roesingercre.com/resources/cap-rate-commercial-property-value?hsLang=en) with your cost of debt. For the regional picture, see our Texas Triangle industrial guide; for yard and trailer users common around the port, see the [industrial outdoor storage guide](https://www.roesingercre.com/resources/industrial-outdoor-storage-guide?hsLang=en).

## What higher rents do to value

Using an illustrative 50,000 SF multi-tenant flex-industrial building with $487,500 of NOI at a 6.50% cap rate, value is $487,500 / 0.065 = $7,500,000, or $150 per square foot. Apply Cushman & Wakefield's 5.0% year-over-year rent growth to 20,000 SF of space renewing at $12.00 per square foot and rent rises by $0.60, adding $12,000 of NOI, assuming the extra rent is not offset by higher expenses. NOI becomes $499,500 and value at the same cap rate is about $7,684,600, an increase of roughly $184,600. That is the case for capturing mark-to-market at rollover rather than locking in long renewals at old rates.

## What to watch next quarter

- Whether absorption keeps pace as speculative buildings in the Northwest and North deliver.
- Sublease additions, an early sign of occupiers trimming space.
- Port and petrochemical activity, which feed a large share of Houston's distribution demand.
- Rent growth versus concessions; record asking rents mean less if free rent widens.

## How to read market reports

- Check which counties and building sizes each report covers; that helps explain the gap between 6.3% and 7.4%.
- Separate direct and sublease vacancy.
- Compare absorption with deliveries; vacancy falls only when demand outruns new supply.
- Read submarkets. A metro average blends very different Southeast, Northwest, and Southwest conditions.
- Rent definitions differ. Colliers reported a Q2 2026 average asking rent of $10.14 per square foot, well above Cushman & Wakefield's figure, largely because property mix and methodology differ. Compare each firm's rent with its own history, not with another firm's number.
- Asking rent is not effective rent once free rent and improvements are counted.

## Frequently asked questions

### What is the industrial vacancy rate in Houston?

CBRE and Cushman & Wakefield both reported Houston industrial vacancy of 6.3% in Q3 2026. Q2 2026 reports from Colliers (7.2%) and Partners (7.4%) were higher, likely reflecting different inventories, but all show vacancy flat to lower.

### What is the average industrial rent in Houston?

Cushman & Wakefield reported a record average asking rent of $8.16 per square foot in Q3 2026, up 5.0% year over year, with warehouse/distribution at $7.93. The Southwest submarket asked the most, at $9.28.

### Is the Houston industrial market strong right now?

By most measures, yes. Cushman & Wakefield reported the highest quarterly leasing since Q1 2022 and a third straight quarter of rising net absorption, and CBRE put 2026 year-to-date absorption at about 18 million square feet.

### Which Houston industrial submarkets are busiest?

In Q3 2026, the Southeast led net absorption in both CBRE's and Cushman & Wakefield's reports. The Northwest and North hold the most construction, per Cushman & Wakefield.

This guide is general information, not legal, tax, or investment advice. Figures are from the third-party reports linked above, summarized in our own words, may cover different quarters, and are subject to revision. This page is updated quarterly. Roesinger LLC is a licensed Texas real estate broker.

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