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Steady absorption supports balanced conditions as Houston’s construction pipeline expands
Vacancy edged higher in 2025, increasing 30 basis points year over year to 7.3% as new deliveries modestly outpaced absorption. Over the past 12 months, 16.2 million square feet (msf) of space was delivered compared with 13.8 msf of net absorption, contributing to the increase. Throughout the year, absorption remained notably steady, totaling 3.9 msf in three of the past four quarters. Recent leasing and development activity were concentrated in the North and Northwest submarkets. Overall, the market continues to exhibit balanced conditions as consistent leasing activity helps offset rising construction activity.