- Constellation Real Estate Partners launches a 422K SF two-building industrial project in Northwest Houston.
- The Houston industrial market continues to see strong absorption with 14.6M SF positive absorption in 2025.
- Demand is rising for both midsized and larger industrial buildings, with national leasing for 500K SF and above up 32% in 2025.
- Midsized projects remain popular due to easier capitalization and available sites, yet larger tenants like Amazon are returning.
New Project Expands Houston Industrial Footprint
According to Bisnow, Constellation Real Estate Partners has announced its ninth Houston industrial project since 2021. The firm revealed plans for Constellation Mills Road, a new speculative development in Northwest Houston. The project will span 422K SF across two buildings on a 37-acre site. It will rise at 8175–8225 Mills Road, a growing industrial corridor. The development will include a 334K SF cross-dock facility and an 88K SF front-load building. Construction will begin in July. Developers expect to complete the project by the second quarter of 2027.
Market Still Favors Midsized Developments
According to Stream Realty Partners, most Houston industrial projects underway are less than 500K SF, reflecting easier capital sourcing and site availability. Only five out of 126 speculative buildings currently under construction exceed 500K SF. Despite this, recent leasing activity—such as Enchanted Rock, Modular Power Solutions, and Triad Electric & Controls securing 400K SF-plus leases—shows steady demand for midsized buildings, mirroring broader stabilization trends seen across other real estate sectors as investors adjust to shifting fundamentals.
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Larger Tenants Return to Houston Industrial Market
Industry experts note renewed demand for larger spaces, with tenants like Amazon active in the Houston industrial sector. Though no 1M SF leases were signed in 2023, the number of national leases 500K SF or larger rose 32% in 2025. Developers face challenges in delivering larger projects, including capital and utility constraints, but are expected to outperform smaller buildings as demand rises.
Strong Absorption and Ongoing Growth
The Houston industrial market absorbed 14.6M SF in 2025, remaining robust despite a construction surge during the pandemic. Recent projects by Trammell Crow, Clarion Partners, and Transwestern add to Houston industrial activity, especially in Northwest Houston, which continues to see strong fundamental demand. KBC Advisors will oversee marketing and leasing for Constellation Mills Road, further reinforcing momentum in Houston’s dynamic industrial landscape.
