Houston’s industrial market continues to show consistent strength, even as national growth levels off. The country’s largest industrial owners and developers all pointed to the same themes this quarter: steady rent growth, high occupancy, and more disciplined expansion. Each of those trends is visible across Houston’s major submarkets.

ProloPrologis reported more than 62 million SF of new leases signed in Q3 and raised full-year earnings guidance to between $5.83 and $5.86 per share. Portfolio occupancy remained near 95%. Executives said tenant demand is still healthy but focused on efficiency rather than pure expansion. That description matches what’s happening in Houston’s northwest corridor, where PepsiCo recently leased 1.05 million SF in Brookshire to consolidate several smaller sites into one hub. Large users are reducing total footprints but choosing well-connected locations.

First Industrial Realty Trust reported $0.76 FFO per share for Q3 and raised its annual guidance. The company achieved about 32% cash rent growth on new and renewal leases and held portfolio occupancy in the mid-90% range. That same trend is visible in Houston’s infill and Beltway submarkets, where older properties are finally resetting to market rents after several years of lag.

STAG Industrial kept its portfolio 95.8% leased and recorded cash leasing spreads of about 27% on 2.2 million SF of leases. Management expects similar performance through next year. In Houston, leasing demand for 50,000 to 200,000 SF buildings remains the most active segment. That range fits many regional distributors and port-related users who need operational space without the carrying cost of larger facilities. It explains why mid-bay assets are leasing faster than the large speculative boxes further out.

LXP Industrial Trust reported 97% occupancy and sold two vacant development projects totaling around 2.1 million SF for about $175 million, roughly 20% above book value. The sales helped reduce leverage and improve cash flow. This kind of transaction suggests that fully stabilized assets remain in demand and that some owners are choosing to realize gains on non-core properties while the investment market is still liquid.

EastGroEastGroup Properties maintained occupancy in the high 90s and posted steady NOI growth across its Sun Belt portfolio, which includes Houston. Their management highlighted limited new construction starts and continued leasing activity for multi-tenant buildings under 200,000 SF. This matches the local trend of developers scaling projects to fit actual tenant demand instead of pursuing large-scale speculative builds.

Across these companies, the outlook is consistent. Occupancy is stable in the mid-90% range, rent growth is still positive, and construction is more selective. The national trend toward measured expansion and tenant-driven development is reflected locally as Houston heads into the end of 2025 with vacancy around 6% and steady leasing in its core corridors. The market has shifted from rapid growth to focused stability, and Houston continues to track closely with the disciplined approach of the sector’s largest players.