The Houston Commercial Real Estate Market

Shanti Ryle

October 24, 2025

A panoramic view of Downtown Houston, Texas at sunset

Key Takeaways

As of October 2025, Houston remains one of the fastest-growing U.S. CRE markets, supported by a metro population of 7.5 million and nearly 200,000 new residents added between 2023 and 2024. The cost of living remains 7.4 percent below the U.S. urban average, reinforcing long-term regional demand.
The regional economy continues to scale, with GDP reaching $550.7 billion and unemployment at 5.0 percent as of August 2025. Houston leads the nation in exports at more than $180 billion annually and ranks #2 for STEM job growth, supported by more than two dozen Fortune 500 headquarters.
Industrial real estate is expanding at a rapid pace, with 14.4 million square feet under construction, 3.99 million square feet of year-to-date absorption, and a vacancy rate of 6.3 percent as of Q2 2025. Median industrial asking rents reached $11 per square foot per year in October 2025.
The office market is stabilizing, with 4.07 million square feet of leasing activity year-to-date as of Q2 2025 and demand concentrated in the CBD, Galleria, and Katy Freeway West submarkets. Vacancy stands at 29.9 percent, but newer Class A properties continue to outperform.
Retail and multifamily conditions remain active, with retail vacancy at 5.6 percent, more than 2 million square feet of leasing activity, and $3 billion in annual sales volume. Multifamily vacancy holds at 9.7 percent, supported by 8,859 units of net absorption year-to-date and more than 12,600 units under construction as of Q2 2025.

Houston stands out as one of the nation’s most dynamic commercial real estate markets, attracting investors, developers, and tenants from across the country. With its business-friendly environment, diverse economy, and growing population, the Houston–The Woodlands–Sugar Land metro area is a powerful engine for CRE activity and long-term growth.

From its thriving energy sector to expanding medical and technology corridors, Houston offers a broad spectrum of opportunities for every type of investor. Crexi helps connect these opportunities with decision-makers, bringing together buyers, sellers, and brokers through a single, data-driven platform designed to simplify every step of the transaction process.

Whether it’s uncovering new listings, analyzing market comps, or marketing properties to a national audience, Crexi’s tools make it easier than ever to find and close deals in the Greater Houston area. To date, Crexi has facilitated more than $615 billion in commercial property sales and marketed over $7 trillion in assets nationwide.

Today, we proudly serve Houston, The Woodlands, Sugar Land, Pasadena, Missouri City, and beyond as the fastest-growing online commercial real estate marketplace.

A view of downtown Houston as seen from a park outside the CBD

Houston Commercial Real Estate Market Overview

Houston is the economic heartbeat of Southeast Texas and the fifth-largest metro in the United States, combining scale, diversity, and forward-thinking growth. Its economy stretches far beyond oil and gas, anchored by powerhouse industries in healthcare, aerospace, logistics, clean energy, and advanced manufacturing. Home to the Texas Medical Center, the world’s largest medical complex, and NASA’s Johnson Space Center, Houston continues to attract top talent and global investment.

New development tells the story of a city that never stops evolving. Downtown high-rises share the skyline with mixed-use communities and expanding industrial corridors in surrounding counties. Business-friendly policies, affordable land, and a steady influx of new residents fuel demand across every CRE sector. With its unique mix of innovation, resilience, and opportunity, Houston is undoubtedly a cornerstone of commercial real estate in the U.S.

Regional Context

The Houston area has become one of the fastest-growing regions in the country, drawing newcomers with its job opportunities, business-friendly climate, and relatively affordable cost of living. A young, diverse population keeps demand strong for housing, retail, and services, while steady in-migration fuels expansion across every corner of the market. For CRE investors, this population momentum translates into consistent activity and long-term stability, supported by an economy that continues to scale alongside its people.

The population of the Houston-Pasadena-The Woodlands, TX metro area is 7.5 million, with over 2.3 million people living within the Houston city limits.
Between 2023 and 2024, the Houston metropolitan area welcomed nearly 200,000 new residents, second in growth only to New York-Newark-Jersey City, NY-NJ.
The cost of living in the metro area is 7.4% lower than the U.S. urban average, and a staggering 24% lower than the average of America’s most populous cities.
Housing in Houston is particularly affordable, about 22% lower than national averages.
The median age in Houston is 35.7, about 90% of the figure in the US.
Per capita income is $40,909 and median household income is $79,463, with 40% of households earning more than $100,000 per year.

A tall set of buildings in Houston's downtown area.

Houston Job Market

Houston’s job market reflects the city’s trademark mix of resilience and reinvention. Long known as the energy capital of the world, Houston continues to lead in oil, gas, and chemicals, but it’s also rapidly expanding into healthcare, biotech, and advanced manufacturing.

Major employers like ExxonMobil, Boeing, and Amazon anchor a diverse employment base, while the Texas Medical Center and Johnson Space Center keep innovation at the forefront. A growing number of Fortune 500 headquarters, paired with strong export and trade activity, reinforce Houston’s position as an international business hub. Supported by an excellent education system and a world-class transportation network, the region’s economy continues to attract top talent and global investment.

GDP for Houston-The Woodlands-Sugar Land MSA is $550.7 billion, according to data from the St. Louis Fed.
The US Bureau of Labor Statistics reports the unemployment rate as 5.0% (August 2025).
Regional industries that saw significant job growth from 2024 to 2025 include education and health services, leisure and hospitality, and trade, transportation, and utilities.
According to the Greater Houston Partnership, the region ranks #2 for STEM job growth.
Houston's target industry sectors are energy, healthcare and biotechnology, advanced manufacturing, information technology, and the chemical industry.
The city is the nation’s #1 metro exporter, surpassing $180 billion in 2024.
Major employers in Houston include Amazon, Boeing, American Airlines, ExxonMobil, Lockheed Martin, and Toyota, spanning a broad range of industries.
More than two dozen Fortune 500 companies are headquartered in Houston, cementing its status as a hub for international business.
Houston is home to more than 40 educational institutions, including the University of Houston, Rice University, and Texas Southern University, fueling a highly educated talent pool.
About 36% of residents hold a bachelor's or postgraduate degree, with an impressively skilled workforce that is constantly growing.
Houston's transportation infrastructure is extensive, with major interstates like I-10, I-45, and I-69, the Port of Houston, George Bush Intercontinental Airport (IAH), and the William P. Hobby Airport (HOU).

A monument in Houston sits at the far end of a pond in a park

Houston Industrial Market

Houston’s industrial market feels like a city in motion - busy, ambitious, and always building toward what’s next. Even after years of rapid expansion, demand remains strong, powered by logistics, energy, and advanced manufacturing. Development has become more measured, but new projects continue to rise in key corridors like the Southeast and Northwest, where tenants seek well-located, modern space. With steady absorption and deep ties to port and trade activity, Houston’s industrial sector isn’t slowing down; it’s evolving with purpose.

Market overview (Cushman & Wakefield Q2 2025)

Inventory: 588,019,131 SF
Vacancy rate: 6.3%
Under construction: 14,460,951 SF
Deliveries: 8,321,808 SF (YTD)
Net absorption: 3,990,992 SF (YTD)
Key leases by tenant: Inventec (540,000 SF), Constellation Beverage (496,421 SF), Foxconn (417,360 SF)
Largest submarkets: Northwest-Far, Southeast-Far, Southwest-Far

Crexi Insights

These are the most recent Houston industrial lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

Asking rate/SqFt (median): $11 per year
Median SqFt/listing: 6,878
Days on market: 159
Total listings on Crexi: 1,267 spaces

For Sale (active)

Median asking price: $1.5 million
Price/SqFt: $130
Asking cap rate: 7%
Median SqFt/listing: 16,600
Days on market: 164
Total listings on Crexi: 427

Sales Comps (past 12 months)

Median sold price: $1.4 million
Sold price/SqFt: $122
Total sales volume: $1.7 billion
Sold cap rate: 5.8%
Median SqFt sold/transaction: 11,700
Total SqFt sold: 7.7 million
Days on market (median): 237

Find Houston industrial space for rent.

A sunset view reflected on Houston tall buildings in rainbow colors

Houston Office Market

Houston’s office market is entering a new phase of balance after several years of change. Tenants continue to seek newer, well-located buildings, especially in the Galleria and Inner Loop areas, where flexible layouts and upgraded amenities align with evolving workplace priorities. Leasing volume has picked up as energy, engineering, and tech firms expand or reposition within the metro. While older buildings continue to face challenges, strong fundamentals and limited new supply are helping restore confidence.

Market overview (Cushman & Wakefield Q2 2025)

Inventory: 184,363,198 SF
Vacancy rate: 29.9%
Net absorption: -99,092 SF (YTD)
Under construction: 599,564 SF
Leasing activity: 4,067,741 SF
Key lease transactions by tenant: Westlake Chemical (126,223 SF), Bechtel Corporation (77,023 SF), Summit Midstream (51,440 SF)
Largest submarkets: Central Business District, West Loop/Galleria, Katy Freeway West

Crexi Insights

For the latest updates on the office market in Houston, turn to Crexi Insights. Here is the detailed information on the most recent leasing and sales trends as of October 2025:

For Lease (active)

Asking rate/SqFt (median): $19 per year
Median SqFt/listing: 1,483 SF
Days on market: 328
Total listings on Crexi: 4,601 spaces

For Sale (active)

Median asking price: $1 million
Price/SqFt: $210
Asking cap rate: 7%
Days on market: 177
Total listings on Crexi: 412

Sales Comps (past 12 months)

Median sold price: $1.2 million
Sold price/SqFt: $190
Total sales volume: $1.1 billion
Sold cap rate: 7.9%
Median SqFt sold/transaction: 4,911 SF
Days on market (median): 165

Find Houston office space for rent.

Houston Retail Market

The Houston retail market is evolving, even as the pace cools slightly from its recent boom. After years of fast growth, the market is settling into a more sustainable rhythm, where smart development and strong local demand keep things steady. New centers and redevelopments across the metro are reshaping how people shop, dine, and spend time in their communities. And while vacancy has ticked up a bit, steady population growth and resilient consumer spending keep retailers confident that Houston’s momentum is far from slowing down.

Market overview (Cushman & Wakefield Q2 2025)

Inventory: 400,674,815 SF
Vacancy rate: 5.6%
Under construction: 3,856,621 SF
Deliveries: 836,921 SF
Net absorption: 154,300 SF (YTD)
Leasing activity: 2,078,945 SF
Key leases by tenant: WalMart (167,050 SF), Score Entertainment (150,000 SF), Confidential tenant (47,175 SF)
Largest submarkets (by inventory): West/Northwest, South, Far Southwest, Far Northwest

Crexi Insights

Houston retail lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

Asking rate/SqFt (median): $22 per year
Median SqFt/listing: 2,300 SF
Days on market: 285
Total listings on Crexi: 2,699 spaces

For Sale (active)

Median asking price: $2.2 million
Price/SqFt: $259
Asking cap rate: 6.6%
Days on market: 141
Total listings on Crexi: 539

Sales Comps (past 12 months)

Median sold price: $1.4 million
Sold price/SqFt: $224
Total sales volume: $3 billion
Sold cap rate: 7.2%
Median SqFt sold/transaction: 4,804 SF
Days on market (median): 126

Find Houston retail space for rent.

A daytime view of tall Houston buildings and surrounding commercial property in the city.

Houston Multifamily Market

Houston’s multifamily market is leveling out after several years of rapid growth. Developers have started to ease back on new construction, giving renters and investors time to catch their breath. Demand remains healthy across the metro, fueled by steady in-migration, job creation, and the city’s reputation for relative affordability compared to other major markets. Even as vacancy rates hold higher than in years past, consistent rent performance and a more measured pace of development point to a market regaining its balance.