The Houston Commercial Real Estate Market in 2026

Houston is one of the country’s largest and most active commercial real estate markets in 2026. The Houston–The Woodlands–Sugar Land metro area has a strong business base, a growing population, major transportation infrastructure, and room for continued development across both urban and suburban markets. Long known for energy, healthcare, logistics, and global trade, Houston continues to grow as a business hub with a wide range of CRE demand drivers.

Crexi helps commercial real estate professionals navigate that activity with tools for property search, market intelligence, lead management, and more. Whether users are evaluating an acquisition, marketing a property, or comparing opportunities across Greater Houston, Crexi brings key market data and digital reach into one platform.

Across its national platform, Crexi has supported more than $902 billion in deals closed, 4.7 billion square feet leased, and more than 114 million leads generated. In the Houston region, Crexi serves Houston, The Woodlands, Sugar Land, Pasadena, Missouri City, and surrounding communities throughout the greater metro area.

The Houston commercial real estate market reflects the size and range of the city itself. Energy is a major part of the local economy, but the region also has strong activity in healthcare, logistics, aerospace, manufacturing, life sciences, and professional services. That mix supports demand across Houston industrial, medical, retail, multifamily, office, and development properties.

The city also has practical advantages that appeal to CRE investors. Houston offers a large labor force, strong highway and port access, comparatively affordable land, and a business climate that continues to attract companies and residents. Growth is spread across a wide region, with established business districts and expanding suburban areas both playing important roles.

Today, Houston is an active but selective commercial real estate market. Investors and occupiers are looking closely at location, property quality, and long-term demand, while the region’s scale, infrastructure, and economic depth continue to support Houston commercial real estate opportunities.

Houston’s growth reflects the advantages that continue to draw people and businesses to the metro: scale, relative affordability, and room to expand. The area continues to attract residents, employers, and entrepreneurs with its solid job market, affordable cost of living, and business-friendly environment. National recognition for livability and business formation adds to the region’s momentum, while Houston’s younger population and rising household incomes point to a large, active consumer and workforce base. The combination of advantages helps explain why Houston remains one of the most important commercial real estate growth markets in Texas.

• The population of the Houston-Pasadena-The Woodlands, TX metro area is nearly 7.8 million, with over 2.3 million people living within Houston proper.
• Between 2005 and 2025, the region’s population grew by nearly 40%, and is projected to be close to 8.5 million by mid-2030.
• The cost of living in Houston is 7% lower than the national average, with housing costs estimated to be about 20% more affordable than the US overall.
• The median age in Houston is 35.7, about 90% of the figure in the US.
• Per capita income is $42,976 and median household income is $81,417, with over 40% of households earning more than $100,000 per year.
• In 2026, Houston was named among the top 10 best cities in America, based on factors such as economic prosperity and livability.
• WalletHub included Houston as one of the best large cities in the U.S. to start a business, crediting the city’s business environment, job growth, office space accessibility, and other key factors.

Houston’s job market is powered by a wide mix of industries, from energy and construction to healthcare, aerospace, technology, and global trade. The region is also a major headquarters market, with more than two dozen Fortune 500 companies based in Houston.

Universities across the metro help feed the talent pipeline, while the port, airports, and highway network keep the region closely connected to national and international business. For commercial real estate, the balance of thriving employers, skilled workers, and strong infrastructure helps drive demand across Houston’s major property sectors.

• 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 5.2% (June 2026).
• Industries that saw significant job growth between 2025 and 2026 include construction, professional and business services, and education and health services.
• According to the Greater Houston Partnership, the region ranks #2 for STEM job growth.
• Target industries in Houston include advanced manufacturing, digital technology, aviation and aerospace, life sciences, and energy.
• The city is America’s #1 metro exporter, surpassing $177 billion in 2025.
• Major employers in Houston include Amazon, Boeing, American Airlines, ExxonMobil, Lockheed Martin, Texas A&M, and Toyota, spanning a broad range of industries.
• Nearly 30 Fortune 500 companies are headquartered in Houston, giving the metro a corporate presence that supports office, industrial, retail, and multifamily demand.
• 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 37% of residents hold a bachelor's or postgraduate degree, contributing to the region’s impressively skilled and diverse workforce.
• Houston has an extensive transportation infrastructure, 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).

Houston’s industrial real estate market continues to show why the region is such a major logistics and distribution center. Leasing has remained active across key corridors, with the Northwest, North, South, and Southwest areas drawing steady occupier interest. New supply is still moving through the pipeline, but industrial tenant demand has helped the market absorb a meaningful amount of space without losing its footing.

Leases from companies such as Tesla, Applied Optoelectronics, and Titanium Plus Autoparts show the wide variety of occupiers looking for space in Houston. Looking ahead, Houston’s ability to pair new development with continued tenant demand will be an important measure of the market’s strength.

Market overview (Cushman & Wakefield Q2 2026)

• Inventory: 613,602,608 SF
• Vacancy rate: 6.3%
• Net absorption: 11,891,483 SF (YTD)
• Under construction: 22,984,062 SF
• Deliveries: 14,343,125 SF (YTD)
• Key leases by tenant: Tesla (504,370 SF), Applied Optoelectronics (343,332 SF), Titanium Plus Autoparts (342,667 SF)
• Largest submarkets: Northwest-Far, Southeast-Far, Southwest-Far

Crexi Insights

These are the most recent Houston industrial real estate lease and sales trends from Crexi Insights, updated as of July 2026:

For Lease (active)

• Asking rate/SqFt (median): $10 per year
• Median SqFt/listing: 4,589
• Days on market: 197
• Total listings on Crexi: 903 spaces

For Sale (active)

• Median asking price: $1.3 million
• Price/SqFt: $156
• Asking cap rate: 5.9%
• Median SqFt/listing: 14,900
• Days on market: 182
• Total listings on Crexi: 453

Sales Comps (past 12 months)

• Median sold price: $1.5 million
• Sold price/SqFt: $124
• Total sales volume: $3 billion
• Sold cap rate: 5.8%
• Median SqFt sold/transaction: 13,100
• Total SqFt sold: 9.2 million
• Days on market (median): 393

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Elevated vacancy remains a defining challenge for the Houston office market, but leasing activity shows that tenants are not sitting still. The strongest Houston office demand continues to favor well-located, higher-quality buildings, especially in the Central Business District, West Loop/Galleria, and Katy Freeway West.

Recent activity from tenants such as Superior Energy and Saber Power Services points to continued movement in the market, even as companies remain careful about space needs. With limited new construction underway, the Houston office market has room to stabilize as existing space is absorbed and tenants continue to prioritize buildings that fit how modern teams work.

Market overview (Cushman & Wakefield Q2 2026)

• Inventory: 179,323,386 SF
• Vacancy rate: 29.4%
• Net absorption: -676,611 SF (YTD)
• Under construction: 214,434 SF
• Leasing activity: 4,728,224 SF
• Key lease transactions by tenant: Confidential tenant (91,761 SF), Superior Energy (56,256 SF), Saber Power Services (42,353 SF)
• Largest submarkets: Central Business District, West Loop/Galleria, Katy Freeway West

Crexi Insights

Crexi Insights provides the latest Houston office market data for brokers, investors, owners, and tenants. Here are the most recent Houston office leasing and sales trends, updated as of July 2026:

For Lease (active)

• Asking rate/SqFt (median): $19 per year
• Median SqFt/listing: 1,453 SF
• Days on market: 319
• Total listings on Crexi: 1,207 spaces

For Sale (active)

• Median asking price: $1 million
• Price/SqFt: $247
• Asking cap rate: 6.3%
• Days on market: 192
• Total listings on Crexi: 436

Sales Comps (past 12 months)

• Median sold price: $1.5 million
• Sold price/SqFt: $176
• Total sales volume: $1.6 billion
• Sold cap rate: 8.3%
• Median SqFt sold/transaction: 7,737 SF
• Days on market (median): 289

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The Houston retail real estate market has cooled from the pace of recent years, but the metro’s large consumer base continues to support tenant demand. Vacancy has stayed relatively contained, and rents continue to hold up even as retailers become more careful about expansion and site selection.

New development is still active in growth areas such as the Far Northwest, East, and Far Southwest, with projects like San Jacinto Marketplace and Texas Heritage Marketplace adding to the pipeline. Population growth and suburban expansion continue to shape Houston retail demand across Houston’s large, spread-out metro.

Market overview (Cushman & Wakefield Q2 2026)

• Inventory: 398,419,392 SF
• Vacancy rate: 5.8%
• Under construction: 3,803,733 SF
• Deliveries: 842,767 SF
• Net absorption: -124,626 SF (YTD)
• Leasing activity: 1,542,244 SF
• Key leases by tenant: Crazy Hot Buys (48,223 SF), Confidential tenant (43,880 SF), Lava Island (38,400 SF)
• Largest submarkets (by inventory): West/Northwest, South, Far Southwest, Far Northwest

Crexi Insights

Houston retail real estate lease and sales trends from Crexi Insights, updated as of July 2026:

For Lease (active)

• Asking rate/SqFt (median): $20 per year
• Median SqFt/listing: 2,095 SF
• Days on market: 231
• Total listings on Crexi: 1,448 spaces

For Sale (active)

• Median asking price: $1.8 million
• Price/SqFt: $243
• Asking cap rate: 6.3%
• Days on market: 167
• Total listings on Crexi: 612

Sales Comps (past 12 months)

• Median sold price: $1.7 million
• Sold price/SqFt: $273
• Total sales volume: $4.2 billion
• Sold cap rate: 6.6%
• Median SqFt sold/transaction: 5,580 SF
• Days on market (median): 217

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The Houston multifamily real estate market is showing signs of a more balanced year after a busy stretch of new apartment deliveries. Demand has started to improve in several urban and suburban areas, especially places that offer strong access, neighborhood amenities, or relative affordability.

At the same time, the construction pipeline has cooled, which may help the market work through recent supply over time. For multifamily investors, Houston remains worth watching as renter demand steadies and activity picks up in submarkets showing early signs of stabilization.

Market overview (Cushman & Wakefield Q2 2026)

• Multi-unit inventory: 692,014 units
• Vacancy rate: 11.5%
• Average effective rent: $1,348
• Deliveries: 4,450 units
• Net absorption: 1,329 units (YTD)
• Under construction: 12,683 units

Crexi Insights

Here are the most recent Houston multifamily market insights from Crexi, updated as of July 2026:

For Sale (active)

• Median asking price: $800,000
• Price/SqFt: $160
• Price/Unit: $155,200
• Asking cap rate: 7.2%
• Days on market: 127
• Total listings on Crexi: 252

Sales Comps (past 12 months)

• Median sold price: $480,000
• Sold price/SqFt: $156
• Sold price/unit: $167,100
• Total sales volume: $5.7 billion
• Sold cap rate: 8%
• Total SqFt sold: 27.7 million
• Days on market (median): 210
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