Demand continues to hold firm, with the Houston industrial market observing positive net absorption of 3.6 million square feet (msf) for Q1 2025. Given the significant amount of leasing observed over the past few quarters, net absorption is expected to continue trending positively over the near term. The Northwest submarket was among the top-performing submarkets, seeing four of the largest deals of the quarter, including Tesla leasing approximately 600,000 square feet (sf) of space in Brookshire. This lease is part of Tesla’s commitment to the area, where the company intends to spend $200.0 million on a new Megafactory, bringing 1,500 manufacturing jobs to the area. While the construction pipeline for the Northwest submarket is among the highest in Houston, net absorption outpaced deliveries, resulting in a slight quarter-over-quarter decrease in vacancy.