News Summary
South Texas is experiencing a significant increase in industrial construction, surpassing national trends. With nearly 47.8 million square feet under construction, Houston leads the charge with 17.8 million square feet of projects. Leasing activity is up 84% year-over-year, fueled by substantial investments from major companies like Amazon and Foxconn. The region’s industrial market continues to show strong demand, with numerous projects underway, highlighting a robust appetite for new developments in South Texas despite a national slowdown.
Surge in Industrial Construction Sweeps South Texas Amid National Slowdown
In a notable shift in the construction landscape, South Texas is witnessing a remarkable rise in industrial construction, outpacing national trends even as interest rates remain comparatively high. Statistics reveal that in the second quarter of 2025, the state boasted 47.8 million square feet (SF) of industrial space currently under construction, reflecting a significant increase of 10.3 million SF since the first quarter.
Houston Emerges as the Epicenter
Houston stands out as the leading hub for industrial construction within Texas, with 17.8 million SF of projects actively underway. This includes a variety of warehouse and logistics spaces that are vital to supporting the region’s economic growth. Presently, Houston is experiencing an industrial vacancy rate of 6.2%, suggesting a healthy demand for new spaces to accommodate businesses.
Dallas and Other Key Markets
Following Houston, Dallas takes the second position, with 15.4 million SF of ongoing industrial projects. The increasing demand for industrial real estate in both cities demonstrates a robust appetite for new developments, setting South Texas apart from the more sluggish trends seen in many areas across the country.
Key Projects Making Headlines
Several significant projects are particularly noteworthy in Houston. Griffin Partners has recently expanded its development near Highway 288, pushing its project size to over 560,000 SF through additional land acquisition. The Griffin 288/West Airport project will consist of three new buildings totaling 568,000 SF.
Additionally, Hanover Company and Transwestern Investment Group have commenced construction on the Kirby 288, a speculative warehouse spanning 213,000 SF in south Houston. This project adds to the diversity of new industrial spaces emerging in the area.
Leasing Activity Climbs
Leasing activity has also surged, with approximately 7.7 million SF of industrial space leased in Houston during Q2 2025. This represents an 84% year-over-year increase in construction activity, pointing towards renewed confidence among developers and investors alike.
Major Investments and New Developments
Additionally, Foxconn has invested heavily in Houston by acquiring the Fairbanks Logistics Park (1 million SF) and leasing space in the Innerbelt Northwest Logistics Park (601,680 SF). Other notable developments include Jackson-Shaw’s establishment of the R45 Distribution Center, a 347,387-SF facility in north Houston, and the groundbreaking of the Gulfbelt Logistics Park by Trammell Crow Co. and CBRE Investment Management, expected to total nearly 1 million SF.
Collaborative Efforts for New Projects
In further developments, Triten Real Estate Partners is set to create a 400,000 SF complex at FM 1960 and Kenswick Drive, while Alliance Industrial collaborates with Northwestern Mutual to develop the TriPort 8, an 881,521-SF industrial park. Constellation Real Estate Partners has secured land in Pasadena for the Constellation Genoa Red Bluff project, which will encompass 240,041 SF.
Amazon’s Expansion and Other Notable Projects
Amazon is also making significant strides in the area with a massive 933,656-SF distribution center underway in Terrell, Texas. Furthermore, Trammell Crow Co. continues its investment in the area by developing Passport Park West, a speculative industrial park expected to reach an impressive 2.7 million SF at Dallas Fort Worth International Airport.
Additional projects in the pipeline include the Speedway Logistics project (804,283-SF), the Interchange 80 logistics facility in Mesquite (203,169-SF), and a partnership that has kicked off a 665,760-SF industrial park in San Marcos.
Future Outlook
As construction ramps up, the ongoing success of the 610 Business District with its second phase kicking off totals 537,132 SF across four new buildings, signals strong demand and continued confidence in industrial development in South Texas. With multiple major projects underway, the region seems poised to further establish itself as a key player in the industrial construction market.
Deeper Dive: News & Info About This Topic
Construction TX Resources
Global Civil Engineering Market Set to Reach $23.0 Trillion
Chicago NFL team confirms privately financed domed stadium and mixed‑use district in Arlington Heights
Construction project management software market poised for rapid growth
Czech industrial output accelerates as manufacturing and construction lift economy
Latin America construction market faces strong demand amid diverging forecasts
Dongfeng completes 47,000 m² gigacasting plant 25 days early
Construction market set for steady rise as data‑centres and insurance deals reshape priorities
North West Company Q2 preview amid TSX small‑cap record
Global architectural services market set to nearly double as digital tools and sustainability drive demand
Nemetschek Acquires Firmus AI via Bluebeam to Add Drawing‑First AI to Construction Workflows
Additional Resources
- CoStar: South Texas Industrial Construction Grows Diverging from National Trend
- Wikipedia: Industrial Construction
- Realty News Report: The Texas Industrial Revolution
- Google Search: Texas industrial construction trends
- JLL: Construction Financing Arranged for Development
- Encyclopedia Britannica: Real Estate Development
- Business Wire: Lovett Industrial Launches Next Phase of 610 Business District
- Google News: Industrial Construction 2025
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
