Houston is poised to remain a powerhouse in the commercial real estate sector in 2025, driven by its robust population and economic growth. The city's industrial market is expected to continue its strong performance, with Houston leading the U.S. in industrial absorption this year. According to JLL Texas Research Director Rachel Alexander, Houston is on track to absorb over 20 million square feet of industrial space in 2024, although this is slightly down from the 25 million square feet absorbed annually from 2021 to 2023. Despite this slight decrease, the absorption rate is still significantly higher than pre-pandemic levels, making Houston's industrial market an attractive sector[1].
The city's industrial success is partly attributed to Port Houston, which is having a record year. Port Houston has announced plans to spend $1.7 billion on landside infrastructure over the next five years, a 35% increase from the previous five years, to keep up with the region's population growth. This investment will further bolster the industrial market and support the city's economic expansion.
In addition to the industrial sector, Houston's office market is showing signs of stability and growth. In 2024, there was a healthy volume of office deals, although with smaller footprints on average. Tenants are implementing long-term, planned-out moves as they settle into post-pandemic work policies, indicating a return to normalcy in the office space market[1].
On the development front, several projects are set to transform Houston's skyline and neighborhoods in 2025 and beyond. The $310 million Buffalo Bayou East project, for instance, includes the revitalization of Tony Marron Park, which will nearly double in size and feature sprawling lawns, civic spaces, and vibrant public art. This project aims to create a central hub for the East End and Fifth Ward neighborhoods[4].
Other notable developments include the One Bridgeland Green project, which will be the region's first mass timber office building, designed to reduce environmental impact by cutting greenhouse gas emissions by 20 percent and lowering annual water consumption by 80 percent. The GreenStreet mixed-use district in downtown Houston is also undergoing a multimillion-dollar makeover, featuring pedestrian-friendly alleyways, rooftop solar panels, and upgraded office spaces[4].
The former Swift and Co. building in the Heights neighborhood is being transformed into a 4.47-acre mixed-use development, encompassing retail, office, and restaurant space. Additionally, the former Halliburton campus in the Westchase District is being redeveloped into Park Eight Place, a $1 billion project that will include residential, retail, hotel, and office space along with access to nature and recreational amenities[4].
In terms of urban walkability, the More Space: Main Street 2.0 project aims to transform seven blocks in downtown Houston into a pedestrian-friendly destination by permanently blocking off traffic and creating a promenade for dining, shopping, and gathering. This project is scheduled to start this year and is expected to be completed ahead of the FIFA World Cup 2026 matches[4].
These developments highlight Houston's ongoing transformation and commitment to sustainability, walkability, and economic growth, solidifying its position as a vibrant and dynamic city in 2025.