News Summary
Texas has recorded a significant increase in industrial construction, totaling 47.8 million square feet under development, with Houston leading at 17.8 million square feet. The growth reflects a robust industrial market driven by high demand in logistics and distribution. Dallas follows as the second leading city in Texas for industrial projects. Key developments include expansions and new constructions by major companies, highlighting the state’s industrial sector’s importance and potential in the real estate landscape.
Houston – Texas has experienced a remarkable boost in industrial construction during the second quarter of 2025, with a total of 47.8 million square feet (SF) currently under construction across the state. This figure marks an increase of 10.3 million SF from the first quarter, highlighting the state’s growing industrial sector.
Leading this surge is Houston, which boasts the lowest industrial vacancy rate in Texas at 6.2%. The city is at the forefront of industrial construction in the state, with 17.8 million SF of projects underway. The focus of these developments includes warehouse and logistics spaces, as well as commercial industrial buildings.
Following Houston, Dallas ranks second in Texas with 15.4 million SF of industrial projects in progress. The ongoing activities in these metropolitan areas underscore an overall robust industrial market in Texas, fueled by high demand for logistics and distribution facilities.
Key Development Projects
Notable projects in Houston include the acquisition of additional land by Griffin Partners to expand their project located near Highway 288, south of Loop 610. This expansion will encompass over 560,000 SF across three buildings. The overall Griffin 288/West Airport project will total 568,000 SF on a 40.7-acre site, with leasing responsibilities managed by CBRE.
Additionally, the Hanover Company and Transwestern Investment Group have commenced construction on a speculative 213,000-SF warehouse named Kirby 288. This facility is strategically located at the northwest corner of Kirby Drive and Mowery Road.
Leasing Trends
In the second quarter of 2025, Houston recorded leasing activity of 7.7 million SF of industrial space. This sustained momentum in leasing reflects a strong industrial market with an impressive growth rate of 84% year-over-year in construction activity.
Market Drivers
The current industrial market dynamics in Houston are reinforced by a surge of activity at the Port of Houston and a growing regional population. Foxconn, a significant player in the tech industry, has made considerable investments in Houston, acquiring the Fairbanks Logistics Park, which consists of four buildings totaling 1 million SF, and leasing an additional 601,680 SF at the Innerbelt Northwest Logistics Park.
Additional developments include the R45 Distribution Center by Jackson-Shaw, which is a 347,387-SF facility in north Houston, and the Gulfbelt Logistics Park by Trammell Crow Co. and CBRE Investment Management, which is a six-building complex nearing 1 million SF.
Expansion Across Texas
Beyond Houston, Texas continues to attract significant industrial development investment. The TriPort 8 project is a collaborative effort between Alliance Industrial and Northwestern Mutual, which will result in an 881,521-SF five-building industrial park in southeast Houston. Meanwhile, Constellation Real Estate Partners is planning a 240,041-SF speculative facility called Constellation Genoa Red Bluff in Pasadena, near the Port of Houston.
The industrial landscape is further enriched by new Amazon distribution centers, including a major project of 933,656-SF on 120 acres in Terrell, and the ongoing development of the Passport Park West project by Trammell Crow Co. at Dallas Fort Worth International Airport, promising 2.7 million SF of speculative space.
The industrial construction activity throughout Texas, particularly in Houston and Dallas, illustrates a thriving market that is responding to increasing demand for logistics and distribution facilities, establishing Texas as a key player in the expansion of industrial real estate.
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Additional Resources
- Realty News Report
- Wikipedia: Industrial Construction
- Virtual Builder Exchange
- Google Search: Houston Industrial Construction
- Commercial Search
- Google Scholar: Texas Industrial Construction
- RE Business Online
- Encyclopedia Britannica: Industrial Facility
- CoStar Group
- Google News: Houston Industrial Projects
- PE Professional
Author: STAFF HERE HOUSTON TX WRITER
HOUSTON STAFF WRITER The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
