Office lease terms expand in Houston as occupiers prioritize quality space

Trophy assets have recorded an 8.4% year-over-year increase in average lease terms for new deals, reaching 104 months. This trend reflects occupiers securing premium space for longer durations as availability tightens, driven by Houston’s limited office construction pipeline.
Across the broader class A segment, average lease terms have modestly increased by 0.7% year-over-year to 79 months, signaling a gradual shift toward longer commitments. As trophy space becomes increasingly scarce, occupiers are turning to the next tier of recently renovated buildings and are willing to commit for longer periods in exchange for high-quality, amenity-rich environments and substantial tenant improvement packages.
Overall average lease terms have risen 1.1% year-over-year to 66 months but remain 9.1% below pre-pandemic levels, largely reflecting continued softness in lower-quality assets. While class B/C properties have seen lease terms increase by 2.6% year-over-year to 51 months, durations remain 16.3% below pre-pandemic benchmarks as occupiers remain cautious about committing to underperforming space.
As Houston’s office market continues its recovery, the gap between trophy and class A lease terms is expected to narrow. Ongoing supply constraints at the top of the market are driving demand toward high-quality class A properties, supporting longer lease commitments for assets with strong amenities amid future supply uncertainty.

May 26, 2026

Get market intel

US-TX-HOU Houston