Houston’s industrial market is experiencing remarkable growth as developers and companies continue to invest in large-scale projects across the region.   According to CBRE’s third-quarter 2024 analysis, Houston experienced a strong net absorption of nearly 6.2 million square feet, bringing the year-to-date total of space leased to 16.3 million square feet, a four percent increase over last year. The report also highlighted a rise in industrial supply, with an additional 3.3 million square feet delivered during the quarter.  Click to expand The southeast submarket was the most active for new developments, with 3.8 million square feet under construction and a 24.6% prelease rate. A key contributor to this growth was Palmer Logistics, which moved into a 616,700-square-foot warehouse facility in Baytown, increasing its distribution space to over three million square feet. The new facility is located within National Property Holdings’ AmeriPort industrial complex.  CBRE also noted that Hinter Lumber Products contributed to the market's growth by securing a 450,000-square-foot lease at Independence Logistics Park in La Porte.  Click to expand Houston’s southwest submarket is also seeing growth. Dallas-based developer Trammell Crow Company (TCC) recently broke ground on Blue Ridge Commerce Center, a 92-acre development in Fort Bend County. This project will add more than 1.35 million square feet of Class A industrial space across five buildings, with completion anticipated by next summer.  “Houston’s southwest submarket is one of the fastest growing industrial submarkets in the region and was less than five percent vacant as of the second quarter of 2024,” said George Farish of TCC in a statement. With a significant tapering of new supply, we expect the market for Class A industrial space to remain healthy heading into 2025 and beyond.”  Meanwhile, Liberty Development Partners acquired more than 1,000 acres along the Grand Parkway, doubling the size of its Gulf Inland Logistics Park in Dayton. This expansion marks the start of phase two of a three-phase development plan, which will ultimately span nearly 4,000 acres. Prologis, a global real estate giant, is also planning to add up to five million square feet of speculative and build-to-suit industrial space at its 350-acre Legacy Point property in Cypress.   Click to expand Houston’s major transportation hubs are also experiencing similar growth. Avera Companies, a Houston-based real estate firm, announced plans for Baywood Logistics, a 401,154-square-foot front-load distribution building near the Houston Ship Channel. Scheduled for completion next year, the 34-acre facility will feature access to container terminals, advanced ingress/egress capabilities and connectivity to major roadways.   Global investment firm Partner Capital has also acquired 153 acres near the George Bush Intercontinental Airport (IAH) for an industrial park development. Although still in the planning stages, the project is expected to break ground by September 2025.  Click to expand In addition to these projects, logistics companies are ramping up their presence in the region. Grainger recently broke ground on a 1.2 million-square-foot distribution center in Hockley, one of its largest facilities to date that will create 400 jobs with an expected open date in 2026. Cresset Real Estate Partners and Lovett Industrial have also secured the largest speculative industrial lease in the Greater Houston area to date with BroadRange Logistics. The company now occupies the 1.2 million-square-foot Northport Logistics Center within the Conroe Park North development.  Despite low vacancy rates last quarter, Houston’s industrial market remains resilient with strong demand and steady growth expected to continue, according to CBRE.  Learn more about Houston’s industrial market. 

The Greater Houston Partnership received a 2024 Excellence in Economic Development Bronze Award from the International Economic Development Council (IEDC). The award was bestowed specifically for the Partnership’s work in the regional or cross-border partnership for regions with 500,000 or more residents.  The strategy formed in partnership with regional allies, as elaborated in the regional playbook, aims to enhance regional economic development in greater Houston by fostering collaboration and coordination among stakeholders. This involved creating a framework for the Houston Regional Economic Development Alliance (HREDA) to maximize engagement and support.  Formed in 2006, HREDA is comprised of economic development organizations and municipalities interested in creating jobs and investment to maintain a positive business environment. HREDA meets monthly at Partnership Tower, and often at other locations around the region. Hosted monthly at Partnership Tower and other regional sites, HREDA meetings include members from 98 economic development organizations, representing over 160 full-time economic development professionals.  The project's uniqueness and innovation reside in member involvement at every stage, ensuring ownership of the final playbook. It addressed previous collaboration deficits noted in studies, aiming to leverage regional resources for economic growth. The scale of marketing the region is no small feat. Covering 8,838 square miles, the 12-county Greater Houston region, with its centerpiece, the 10-county Houston-Pasadena-The Woodlands MSA, surpasses an area the size of New Jersey,  Despite this vast expanse, the region's stakeholders have rallied together as allies, streamlining processes to attract prospective companies. This collective effort reflects a shared commitment to securing victories for the region's economic growth. “I am proud to be a part of an organization, such as HREDA, that exemplifies how regionalism and collaboration can drive economic success and set high standards for regional development,” HREDA Chair and Chief Economic Development Officer at Partnership Lake Houston Stephanie Wiggins said. “By uniting various stakeholders under a common goal, HREDA leverages the strengths of the Houston region to create a prosperous and sustainable economic environment." Every year IEDC looks specifically for economic development organizations, government entities, initiatives, and programs that have demonstrated consistent, exemplary performance in the economic development profession, leading the execution of projects that have a significant impact on revitalizing communities, and playing a major role in shaping and improving the practice of economic development. “This group understands what it means to succeed together," Greater Houston Partnership President and CEO Steve Kean said. “When we work together as one to combine the expertise, assets and capabilities of our regional partners, the Houston region is unmatched in potential. Through this mindset of regionalism, we can create a more prosperous and inclusive future for all of our citizens.” Learn more about the 12-county region the Partnership represents.