Houston office market report

Q2 2025

The Houston office market is currently navigating a distinct bifurcated recovery, with trophy and Class A+ properties serving as the undeniable drivers of resurgence. This pronounced "flight-to-quality" trend is being fueled by companies prioritizing premium, well-amenitized spaces to attract and retain top talent, further widening the gap within the market. Given the constrained new construction pipeline, these high-quality spaces are increasingly poised to command higher rents and offer fewer concessions. Consequently, we anticipate a future shift in demand towards the next tier of well-maintained and recently renovated buildings, presenting a more cost-effective yet high-quality alternative for discerning tenants.
501k sf

Top-tier assets driving office market recovery

Houston's office market is experiencing a bifurcated recovery, with trophy and Class A+ assets leading the way, absorbing 501k sf during the first half of 2025. This strong demand, coupled with constrained new development and inventory reduction via conversions and owner-user sales, has resulted in a notable 90-basis-point decline in overall vacancy since its peak last year.
5.5 msf

Leasing volume declines during first-half of 2025

Overall leasing volume during the first half of 2025 declined to 5.5 msf, marking its lowest level in a decade, largely attributable to fewer large-scale transactions. However, the underlying demand outlook remains positive, buoyed by an uptick in expansion-related deals and growing requirements from active small- to mid-sized tenants.
$876mm

Office investment sales volume experiences rebound in 1H 2025

Houston's office investment sales market has witnessed a significant surge in activity over the last six months, with sales reaching an impressive $876 million as investors capitalize on heavily discounted properties. With transaction activity consistently increasing since late 2024, price per square foot values appear to be stabilizing, signaling the establishment of a new pricing floor in the market.

Your source for the latest Houston office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Greater Houston area. Avison Young advisors look at Houston commercial real estate activities and the latest Houston statistics to provide you expert market research on Houston's office properties.

Explore different topics like the latest office market pricing trends and analysis of Houston's current office real estate market conditions. Gain a better understanding of Houston’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Houston's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Houston.

Get the latest Houston office market reports right in your inbox

Email Preferences*

Avison Young needs the contact information you provide to us to contact you about our services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy.