Houston Industrial Pipeline Adds 900K SF of New Projects

Houston has the nation’s second-largest industrial pipeline, and two new projects totaling roughly 900K SF target manufacturers and outdoor storage users.
2 min read
Houston Industrial Pipeline Adds 900K SF of New Projects
  • RevKo started the 457K SF AeroPoint 1960 manufacturing campus in North Houston, while MetLife and Panattoni began a 450K SF second phase in Brookshire.
  • Houston has 20.7M SF of industrial space under construction, second nationally, and Q3 absorption of 5.4M SF ran 15% above the 10-year quarterly average.
  • Manufacturing vacancy was only 2.5% in Q1, versus about 7.5% for the overall market, which explains the push toward crane-served and outdoor-storage space.
Key Takeaways

Houston developers are building for manufacturers, not just warehouse tenants, according to Bisnow’s report on two new projects totaling about 900K SF.

20.7M SF is under construction in Houston, the nation’s second-biggest industrial slate.

Tight Market Backs the Starts

Houston absorbed 5.4M SF in Q3, according to Partners Real Estate data cited by Bisnow. That figure beats the decade’s typical quarter by 15%.

Over the last four quarters, absorption totaled 22.3M SF. That marks the highest level since Q3 2023.

Manufacturers Are the Niche

Overall vacancy sits near 7.5%, according to JLL. By comparison, manufacturing vacancy was just 2.5% in Q1 2026.

That gap supports the pitch at AeroPoint 1960. JLL’s Geoff Perrott said manufacturers have few options for crane-equipped buildings in Houston.

AeroPoint 1960

RevKo started construction on the first phase of its 457K SF campus on FM 1960 East in North Houston, according to a JLL announcement cited by Bisnow.

Phase 1 spans 202K SF across five buildings, each with outdoor storage yards. Delivery is set for Q3 2027. A later phase would add 255K SF for tenants seeking design-build or custom projects.

Twinwood Doubles Down

In Brookshire, MetLife Investment Management and Panattoni have started a 450K SF Phase 2 of Enterprise Park at Twinwood. The 272K SF first phase is fully leased, according to CBRE.

Vestas leased 131K SF in August, Bisnow reported. Earlier, Abnex, a venture of ABB and Niedax, took a 91K SF building.

Phase 2 includes three buildings ranging from 91K to 181K SF. According to CBRE, two will finish in June and the third in July.

Why It Matters

Specialized space remains scarce. As a result, users that need cranes and yard space have few options. This is a different tenant pool from the big-box distribution crowd.

The trend also fits the broader story in our Panama Canal expansion coverage. Houston added 238M SF of industrial space over the past decade.

What’s Next

Watch how quickly tenants lease the new buildings. MetLife is also a developer in this market. Its own view of 2027 returns depends on slower construction supporting income growth.

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