October 28, 2026
Houston’s industrial market had a strong third quarter, but the published figures vary more than the headlines suggest. This post compares four brokerage reports and explains what the differences mean for anyone who relies on market data in an appraisal or a lending decision.
Demand was strong in every report
Net absorption, the change in occupied space over a period, was healthy across all four. Savills reports 7.5 million square feet for the quarter and 17.8 million year to date, compared with 9.4 million in the same period last year. CBRE reports 7.2 million for the quarter and about 18 million year to date. Cushman & Wakefield reports 7.3 million and calls it the strongest quarter since the second quarter of 2022. Lee & Associates, whose report covers industrial distribution space, reports a record 10.0 million.
Cushman & Wakefield also reports leasing activity of 14.6 million square feet, up 66.3% from the second quarter and the highest since the first quarter of 2022. Its average asking rent reached a record $8.16 per square foot, up 5.0% from a year earlier.
Vacancy and supply differ by source
Source | Net absorption | Vacancy | Under construction | Deliveries
Lee & Associates (distribution) | 10.0M SF | 5.2% | 13.5M SF | 5.9M SF
CBRE | 7.2M SF | 6.3% | 18.4M SF | 4.9M SF
Cushman & Wakefield | 7.3M SF | 6.3% | 19.6M SF | 7.6M SF
Savills | 7.5M SF | 7.2% | Not reported | Not reported
Cushman & Wakefield adds that 93.9% of the pipeline is speculative, meaning it is being built without a signed tenant. It also reports sublease availability of 5.0 million square feet, up from 4.1 million in the second quarter.
Why the numbers differ
Most of these report pages do not define vacancy or inventory, and most do not state a minimum building size. Lee & Associates covers industrial distribution space, while Cushman & Wakefield covers the metro’s industrial market by submarket. Differences in scope and method likely explain much of the gap, though the reports do not confirm this.
What this means for valuation
The following points reflect general appraisal practice, not findings from the reports.
- Match the data to the property. A distribution warehouse should be compared with data for the same product type, size range, and submarket, and the report’s definitions should be known before its vacancy rate is used.
- Asking rents are not contract rents. A record average asking rent does not establish market rent for a specific building. Lease comparables, concessions, and escalations should support the conclusion.
- Watch the delivery schedule. With a largely speculative pipeline, the timing of new supply and lease-up can affect vacancy and rents for competing buildings.
Teel Valuation Group prepares industrial appraisals and appraisal reviews for lenders, attorneys, and property owners. Learn more about our industrial valuation services or connect with an expert at 713-467-5858.
Sources:
- Lee & Associates Houston, “Houston Industrial Distribution Market Report Q3 2026”: https://www.lee-associates.com/houston/2026/10/01/houston-industrial-distribution-market-report-q3-2026/
- CBRE, “Houston Industrial Figures Q3 2026”: https://www.cbre.com/insights/figures/houston-industrial-figures-q3-2026
- Cushman & Wakefield, “Houston Industrial MarketBeat”: https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/houston-marketbeats/industrial
- Savills, “Houston Q3 2026 Industrial Market Report”: https://www.savills.us/research_articles/229130/395116-0