Q3 2025 | Houston Office Market Report
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HOUSTON - Txylo -- "Houston's office market is showing renewed strength with consecutive quarters of positive absorption and declining vacancy."

Danny Rice | President

Market Trends

Houston's office market shows encouraging momentum with positive net absorption for the second consecutive quarter, netting 992,959 SF year to date, reversing the negative trend since 2019.
The overall vacancy rate improved to 27.4% after reporting record-highs earlier in the year.
Class B properties outperformed Class A in absorption during the third quarter due to a few larger move ins, representing a diversification beyond the traditional flight-to-quality trend.
Construction activity remains limited, with two of the three buildings currently underway already 100% preleased before completion next year.
Leasing volume has slowed to 2.1M SF, a 25.6% drop from last quarter and a 42.0% drop year over year.
Overall gross asking rents increased 6.1% from last quarter to $30.74 PSF, representing a marginal year-over-year increase.