HOUSTON – Texas is experiencing a new wave of industrial expansion, with construction activity across the state reaching record levels in the second quarter of 2025. According to CBRE, 47.8 million square feet of industrial space is now under construction, a sharp increase of 10.3 million SF compared to the first quarter.
Houston leads the charge, with 17.8 million SF underway, while Dallas follows closely with 15.4 million SF of active projects. The surge includes a mix of warehouse, logistics, and large-scale industrial facilities.
“Houston is one of the most dynamic and energized cities in the country right now,” said James Melody, Development Partner at Hanover Company.
Griffin Partners recently expanded its footprint near Highway 288 by acquiring additional land for a large-scale project.
“Securing the adjacent parcel marks a major milestone for our team and allows us to realize the full potential of this strategic infill site,” said Travis Covington, President of Development at Griffin Partners. “By combining Phase I and Phase II into one cohesive development, we’re delivering over 560,000 SF of next-generation industrial space on a unified timeline.”
The Griffin 288/West Airport project will include 568,000 SF across 40.7 acres, with CBRE’s Faron Wiley and Billy Gold overseeing leasing.
Meanwhile, Hanover Company and Transwestern Investment Group began construction on Kirby 288, a 213,000-SF speculative warehouse located at Kirby Drive and Mowery Road.
Colliers reported 7.7 million SF of industrial leasing in Houston during the second quarter alone, reflecting the market’s strength.
“As we move into the second half of 2025, Houston’s industrial market remains active, with construction activity surging 84% year-over-year, providing a strong indicator of renewed developer confidence,” said Danny Rice, President of Colliers Houston. “With continued growth in both Port of Houston traffic and the region’s population, market fundamentals remain solid, positioning Houston for a positive finish to the year.”
Adding to the momentum, Foxconn, a major supplier for Apple and Nvidia, secured two significant Houston deals, including the purchase of Fairbanks Logistics Park (1M SF) and a 601,680-SF lease in the Innerbelt Northwest Logistics Park.
Other Texas metros are seeing equally ambitious projects:
With Houston and Dallas driving momentum, Texas is becoming one of the most active industrial construction markets in the U.S. Demand is fueled by port activity, e-commerce, population growth, and major corporate relocations. Developers are racing to keep pace with tenant demand, and industry leaders expect strong leasing to continue through 2026.
Originally reported by Realty News Report.
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