Houston’s expansion: energy, healthcare, and industrial projects lead the way

Visit our website for annual economic reports, key interviews with market leaders, and our video and podcast series Invest: Insights.

• Taylor Swift’s Eras Tour in Miami generated an estimated $75-$80 million for South Florida’s economy, drawing around 350,000 fans to Hard Rock Stadium, with over 70% traveling from outside the region. Hotels, food services, retail, and transportation sectors saw substantial boosts, including $44.6 million spent on lodging alone. The concerts highlighted Swift’s multigenerational fanbase, attracting a diverse audience from across the U.S. and prompting local businesses, like The Shops at Merrick Park, to create Swift-inspired experiences, further amplifying the economic impact.
• Atlanta’s real estate market continues to thrive, with transportation infrastructure at the heart of the city’s booming development. Earlier this year, Mayor Andre Dickens proposed a new MARTA rail station connecting riders to the BeltLine, an initiative aimed at improving accessibility and closing the socioeconomic divide in the city.
• Hockey’s footprint in South Florida is evolving, and the Florida Panthers’ recent Stanley Cup victory could be the start of more to come on and off the rink. The team’s long-term partnership extension with Broward County through 2035 highlights a shared vision for continued economic growth, driven by sports tourism and community engagement.

Quote of the week

"Housing is an interesting market. On the one hand, affordability is a major concern for us and for the industry. Nevertheless, we also lack the capacity and lots to build out the number of homes that are needed.". - Tim Pratt , CEO, Copper Builders

Houston continues to expand with major developments in energy, healthcare, and industrial markets

Writer: Andrea Terán

Houston is undergoing a major transformation, marked by significant developments across its energy, healthcare, and industrial sectors. Despite challenges such as rising office vacancy rates, the city’s role as a hub for corporate expansions remains strong, with key projects underway that are reshaping its economic landscape.

One of the city’s most notable projects comes from Houston-based NRG Energy, which is embarking on a $31.4 million build-out of its new downtown headquarters. The company will occupy 245,000 square feet on the top floors of Fulbright Tower at 1301 McKinney St., with construction expected to conclude in 2025.

“We’re excited about the build-out of our new headquarters, which offers a modern space designed to foster even greater collaboration and innovation among our teams,” Joe Walters, NRG vice president of enterprise security, real estate, and resiliency told Invest:. “This new facility is more than just a building — it represents a strategic investment in our future, offering operational synergies and enriching the overall employee experience.”

In the healthcare sector, MD Anderson Cancer Center is continuing its ambitious expansion with a new $239.2 million research facility near the Texas Medical Center. The 281,000-square-foot building will house cutting-edge laboratories for preclinical research and is set for completion by 2028. This project is part of a broader $777 million plan to enhance MD Anderson’s capabilities both within and beyond Houston, including a new ambulatory cancer care facility in Sugar Land.

Houston’s industrial market is also experiencing an unprecedented boom, with over 6.2 million square feet absorbed in 3Q24, according to CBRE. In Baytown, Palmer Logistics has expanded its distribution network with a 616,700-square-foot facility, while Trammell Crow Company has broken ground on the Blue Ridge Commerce Center in Fort Bend County, adding 1.35 million square feet of Class A industrial space by 2025. Adding to this momentum, Grainger has also begun construction on a 1.2 million-square-foot distribution center in Hockley. This facility will become one of the largest in Grainger’s portfolio, enhancing the company’s supply chain capabilities in the Greater Houston region.

Click here for the full article.

A Capital Analytics subscription offers readers full access to subscriber-only stories including exclusive interviews and market analysis on key sectors in U.S. metro areas.

For more details click and subscribe here.

Follow us on LinkedIn, YouTube, Instagram, X, and Facebook.