HOUSTON – (Realty News Report) – Texas experienced a jump in industrial construction in the second quarter, with the amount of space under construction reaching 47.8 million SF, according to CBRE. That is up 10.3 million SF from the first quarter.
Houston, with an industrial vacancy rate of 6.2%, is the top Texas market for industrial construction with 17.8 million SF underway, including warehouse and logistics space and other commercial industrial buildings, according to CBRE. Dallas is second with projects in the works totaling 15.4 million SF.
“Houston is one of the most dynamic and energized cities in the country right now.” James Melody, Hanover Company.
Demonstrating optimism that is present in the Houston industrial market, Griffin Partners recently acquired more land to enlarge its scope of a its new project underway near Highway 288, south of Loop 610.
“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 new project, developed by Griffin Partners Income & Value Fund IV and Peakline Real Estate Funds, will have a total of 568,000 SF on 40.7 acres. CBRE’s Faron Wiley and Billy Gold will handle leasing efforts for the project, called Griffin 288/West Airport
In another south Houston development, Hanover Company and Transwestern Investment Group just started construction on a speculative warehouse called Kirby 288, a 213,000-SF development at the northwest corner of Kirby Drive and Mowery Road.
“Houston is one of the most dynamic and energized cities in the country right now, and this development reflects that momentum,” said James Melody, Development Partner at Hanover.
In Houston, some 7.7 million SF of industrial space was leased in the second quarter, Colliers reported.
“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.”
Foxconn, a major tech manufacturer for Apple and the Nvidia semiconductor firm, closed on several major deals in Houston recently, acquiring the new four-building, 1 million SF Fairbanks Logistics Park. Foxconn also leased 601,680 SF in the Innerbelt Northwest Logistics Park.
New Houston Industrial Construction Projects:
North Texas-based Jackson-Shaw is developing R45 Distribution Center, a 347,387-SF industrial facility in north Houston.
Trammell Crow Co. and CBRE Investment Management recently broke ground on Gulfbelt Logistics Park, a six-building development that will total nearly 1 million SF at the northeast corner of Beltway 8 and the Gulf Freeway.
Griffin Partners is developing Griffin 288/West Airport, a project totaling 568,619 SF in three buildings in the south Houston submarket.
Triten Real Estate Partners is developing a two-building industrial complex that will bring nearly 400,000 SF of distribution space at FM 1960 and Kenswick Drive in north Houston.
Alliance Industrial, in partnership with Northwestern Mutual, will develop TriPort 8, an 881,521-SF, five-building industrial park on 62 acres in southeast Houston at the intersection of Beltway 8 and Grayson Road.
Hanover Company and Transwestern Investment Group broke ground on Kirby 288, a 213,425-SF spec warehouse located at Kirby & Mowery, west of Highway 288. The leasing team is Colliers’ Robert McGee, Taylor Schmidt, and Austin Bartula.
Constellation Real Estate Partners acquired 15 acres in Pasadena for a 240,041-SF spec near the Port of Houston at 2555 Genoa Red Bluff Road. The project will be called Constellation Genoa Red Bluff.
In southwest Houston, Constellation is leasing up Constellation Post Oak, a two-building project on South Post Oak Road just inside Beltway 8. US ELogistics Service Corp. leased the entire 302,825-SF building one, while D&R Signs leased 44,978 SF.
New Industrial Projects Around Texas:
SAN MARCOS, Texas – Design-build firm Arco/Murray, in partnership with St. Clair Commercial Realty and Ledo Capital Group, broke ground on phase one of a 665,760-SF industrial park in San Marcos. Stream Realty Partners is handling leasing. Three buildings are planned.
TERRELL, Texas – Amazon is building a 933,656-SF distribution center on 120 acres acquired from Hunt Realty Investments in Terrell near Dallas.
IRVING, Texas – Trammell Crow Co. earlier this year started Passport Park West, a 2.7 million-SF speculative industrial park at Dallas Fort Worth International Airport. Phase one, with 1.75 million SF in three buildings, is expected to deliver in the first quarter of 2026. Phase two would add four more buildings.
GRAND PRAIRIE, Texas – Constellation Real Estate Partners is developing the 286,700-SF Constellation Rock Island Logistics Center in Grand Prairie. Completion is planned in early 2026.
SOCORRO, Texas – Trammell Crow Co. and JV partner Barings broke ground on Speedway Logistics, a two-building, 804,283-SF spec development in Socorro near El Paso. The target for completion is July 2026.
MESQUITE, Texas – Lovett Industrial and Crow Holdings Capital are developing Interchange 80, a 203,169-SF logistics facility in Mesquite. Spaces are being marketed for lease.
Aug 21, 2025 Realty News Report Copyright 2025
Rendering image Kirby 288. Courtesy Hanover Company and Transwestern Investment Group
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