Tomball/Magnolia CRE Snapshot | Q3 2025

TOMBALL, Texas - EntSun -- Key Takeaways

• Vacancy rates declined across all CRE sectors year over year and quarter over quarter, except for industrial, which recorded a slight quarterly increase.
• The industrial pipeline continues expanding with 29 projects totaling 1.2M SF currently underway.

Office Highlights

• Vacancy fell to 7.0% from 7.5% last quarter and a significant drop from 9.1% year over year.
• Net absorption reached 5,038 SF, rebounding from both the negative 4,991 SF recorded last quarter and the negative 7,637 SF from a year ago.
• Average asking lease rates rose 7.3% to $26.41 PSF from $24.62 PSF in the prior quarter and from$26.01 PSF year over year.

Medical Office Highlights

• Vacancy improved to 8.6% from 9.3% last quarter and 12.4% year over year.
• Net absorption slowed to 4,748 SF from 7,541 SF last quarter but remains above the negative 5,255 SF recorded last year.
• One 25,900-SF medical office condo is currently in the pipeline.
• Average asking lease rates edged up to $32.00 PSF from $29.97 PSF last quarter, showing an 18.0% increase from $27.12 PSF in the same period last year.

Industrial Highlights

• Vacancy rose to 7.6%, up from 6.9% last quarter but down from 12.1% a year ago.
• Net absorption of 97,369 SF is a sharp decline from the previous quarter's 653,994 SF, yet above the 65,803 SF recorded last year. Year-to-date absorption stands at 1.0M SF.
• Construction activity surged 61.7% to 1.2M SF from 757,088 SF last quarter, and more than tripled from the 343,573 SF a year ago. The largest property underway is Northwest 99 Business Park I, a 425,350-SF distribution warehouse developed by Clay Development & Construction.

Retail Highlights

• Vacancy fell 30 basis points from second quarter to 3.6% and is down 70 bps from the same period last year.
• Net absorption declined 38.0% to 70,926 SF from 114,323 SF last quarter, similar to the total year over year.
• Construction dipped 1.6% to 109,236 SF in third quarter but fell 40.4% from 183,331 SF a year ago.
• Average asking lease rates declined to $21.89 PSF, down 1.3% quarter over quarter and down 9.2%year over year.

Read the full report at colliers.com/houstonresearch

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