Industrial Design-Build Excellence

Texas is experiencing a significant surge in industrial development, with construction activity reaching record highs in the second quarter of 2025. According to CBRE, 47.8 million square feet of industrial space is currently under construction statewide, an increase of more than 10 million square feet from the previous quarter. Houston leads the expansion with 17.8 million square feet underway, followed closely by Dallas with 15.4 million square feet. The projects include a mix of warehouses, logistics centers, and large-scale industrial facilities, reflecting strong investor and developer confidence.

In Houston, developers are rapidly advancing new projects, reinforcing the city’s position as one of the most active industrial markets in the country. Leasing remains robust, with Colliers reporting 7.7 million square feet leased in the second quarter alone and construction activity up 84% year-over-year. Major corporations, including Foxconn, are investing heavily in the region, signaling continued market confidence and long-term growth potential.

Industrial expansion is also accelerating across other Texas metros such as San Marcos, Terrell, Irving, Grand Prairie, Socorro, and Mesquite. With Houston and Dallas driving much of the momentum, Texas has emerged as one of the most active industrial construction markets in the United States. The boom is fueled by e-commerce growth, population increases, and ongoing corporate relocations, positioning the state for sustained industrial strength through 2026.

Reference: https://www.constructionowners.com/news/texas-sees-industrial-construction-surge

Texas is undergoing an unprecedented wave of industrial construction, driven by a strong energy sector, federal incentives, and surging demand for high-tech and energy infrastructure. Federal programs such as the Inflation Reduction Act, the Infrastructure Investment and Jobs Act, and the CHIPS and Science Act have supercharged investment in semiconductor manufacturing, clean energy, and large-scale infrastructure projects. At the same time, advances in artificial intelligence, data processing, and cloud services have created significant demand for new data centers, which in turn rely heavily on Texas’ growing supply of electricity from natural gas, wind, and solar sources.

Semiconductor and high-tech manufacturing projects are leading the way. Construction contracts in Texas jumped from just $17 million between 2017 and 2019 to $15 billion in 2023, nearly 24 percent of all U.S. semiconductor construction. Major initiatives include Texas Instruments’ $30 billion multi-plant expansion in Sherman, GlobalWafers’ new $3.2 million-square-foot facility, and Samsung’s $17 billion plant in Taylor, with additional projects worth more than $40 billion in planning. Data center development is also surging, with construction rising from $870 million in 2017 to $6.8 billion in 2023. Texas captured 10 percent of national data center contracts thanks to its ample land, favorable regulations, relatively low-cost electricity, and established high-tech workforce.

Energy and petrochemical projects continue to anchor the boom. Houston was designated a federal hydrogen hub, attracting more than $1 billion in funding, while abundant natural gas continues to fuel new LNG facilities and petrochemical expansions such as OxyChem’s $1.1 billion plant addition in La Porte. These investments reinforce Texas’ role as both a low- and high-carbon energy leader. Supporting this growth, industrial construction wages in Texas reached nearly $48 per hour in 2023, almost 40 percent higher than the statewide average, reflecting strong demand for skilled labor.

Since mid-2022, Texas has attracted $289 billion in new construction contracts, representing 16.5 percent of the national total, with $165 billion in private projects announced and $78 billion of that dedicated to semiconductors. While challenges remain—including labor shortages, supply chain pressures, and uncertainty over future federal funding under the Trump administration—the scale of development already underway is historic. With its unique combination of energy resources, skilled workforce, and strategic location, Texas has firmly established itself as the epicenter of America’s post-pandemic industrial construction boom.

Reference: https://www.dallasfed.org/research/swe/2025/swe2501