\n| AVAILABLE SUBLEASE<\/td>\n | 5,421,186<\/td>\n | 5,611,529<\/td>\n | 5,468,998<\/td>\n | 5,678,272<\/td>\n | 5,637,427<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n Houston\u2019s office market continued to show gradual stabilization over the past year, but the recovery remains uneven and still tied to the post-COVID reset.<\/span><\/strong><\/p>\nDirect vacancy improved modestly from 23.2% in Q1 2025 to 22.8% in Q1 2026, while direct asking rents rose from $29.03 per square foot to $31.08 per square foot, reinforcing that pricing has held up better than occupancy. Leasing activity remained relatively healthy, ranging from roughly 2.2 million to 3.0 million square feet per quarter, though net absorption was inconsistent and turned negative 180,316 square feet in Q1 2026 after three consecutive <\/span>quarters of positive gains. Sales activity was also volatile, including a notable spike in Q3 2025, suggesting capital markets interest remains selective rather than broad-based.<\/span><\/p>\nAvailable sublease space trended modestly lower over the past year, while the construction pipeline narrowed to 483,654 square feet, reflecting continued caution from developers. Overall, Houston is stabilizing, but the office market has not fully recovered, and momentum remains concentrated in higher-quality, better-located assets.<\/span><\/p>\n
\nKey Activities<\/span><\/h2>\n\n\n\n\n\n <\/colgroup>\n\n\n| TENANT<\/th>\n | BUILDING NAME\/ADDRESS<\/th>\n | SIZE (SF)<\/th>\n | SUBMARKET<\/th>\n<\/tr>\n | \n| COMMENCEMENTS<\/td>\n<\/tr>\n | \n| Dow<\/td>\n | CityCentre Six Office<\/td>\n | 203,000<\/td>\n | Katy Freeway East<\/td>\n<\/tr>\n | \n| Vitol<\/td>\n | The RO<\/td>\n | 150,794<\/td>\n | Greenway Plaza<\/td>\n<\/tr>\n | \n| Boardwalk Pipelines<\/td>\n | 990 Town and Country Boulevard<\/td>\n | 143,253<\/td>\n | Katy Freeway East<\/td>\n<\/tr>\n | \n| LEASING ACTIVITY<\/td>\n<\/tr>\n | \n| Mitsubishi Corporation<\/td>\n | 1100 Louisiana Street<\/td>\n | 91,761<\/td>\n | Central Business District<\/td>\n<\/tr>\n | \n| Superior Energy<\/td>\n | 8020 Katy Freeway<\/td>\n | 56,256<\/td>\n | Katy Freeway East<\/td>\n<\/tr>\n | \n| Armstrong Lee & Baker<\/td>\n | Brookhollow Central I<\/td>\n | 36,476<\/td>\n | North Loop West<\/td>\n<\/tr>\n | \n| SUBLEASE<\/td>\n<\/tr>\n | \n| NOV<\/td>\n | NOV Headquarters<\/td>\n | 410,465<\/td>\n | Southwest\/Beltway 8<\/td>\n<\/tr>\n | \n| JP Morgan Chase<\/td>\n | The Jones on Main<\/td>\n | 122,365<\/td>\n | Central Business District<\/td>\n<\/tr>\n | \n| McDermott International<\/td>\n | Energy Center V<\/td>\n | 99,501<\/td>\n | Katy Freeway West<\/td>\n<\/tr>\n | \n| BUYER | SELLER<\/th>\n | BUILDING NAME\/ADDRESS<\/th>\n | SIZE (SF)<\/th>\n | SUBMARKET<\/th>\n<\/tr>\n | \n| SALE TRANSACTIONS<\/td>\n<\/tr>\n | \n| Interra Properties | Trigild<\/td>\n | Greenway Plaza Portfolio<\/td>\n | 4,311,629<\/td>\n | Greenway Plaza<\/td>\n<\/tr>\n | \n| Zhukovski Development | Credit Suisse<\/td>\n | 919 Milam<\/td>\n | 542,919<\/td>\n | Central Business District<\/td>\n<\/tr>\n | \n| AAA Investments | Silver Star Properties REIT<\/td>\n | The Preserve at North Loop Portfolio<\/td>\n | 225,628<\/td>\n | North Loop West<\/td>\n<\/tr>\n | \n| DEVELOPER<\/th>\n | BUILDING NAME\/ADDRESS<\/th>\n | SIZE (SF)<\/th>\n | SUBMARKET<\/th>\n<\/tr>\n | \n| DELIVERIES<\/td>\n<\/tr>\n | \n| Transwestern<\/td>\n | The RO<\/td>\n | 150,794<\/td>\n | Greenway Plaza<\/td>\n<\/tr>\n | \n| UNDER CONSTRUCTION<\/td>\n<\/tr>\n | \n| Service Corporation International<\/td>\n | 1945 Allen Parkway<\/td>\n | 210,000<\/td>\n | Midtown<\/td>\n<\/tr>\n | \n| Hanover Company<\/td>\n | Autry Park<\/td>\n | 127,651<\/td>\n | Midtown<\/td>\n<\/tr>\n | \n| Majestic Developers<\/td>\n | Majestic HQ<\/td>\n | 45,883<\/td>\n | Fort Bend County\/Sugar Land<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nSales Overview<\/h2>\n![\"\"](\"https:\/\/www.lee-associates.com\/houston\/wp-content\/uploads\/sites\/80\/2026\/07\/2026-Q1-Houston-Citywide-Office-Market-Report-1-1.png\") <\/p>\n
Submarket Sales Activity<\/span><\/strong><\/h3>\nHouston\u2019s office investment activity in Q1 2026 remained concentrated in a handful of submarkets, with the Central Business District leading by a wide margin. The CBD recorded roughly 1.05 million square feet in sales volume, driven by the 601 Jefferson Street transaction, while FM 1960\/Highway 249 followed with about 471,000 square feet, anchored by the 1002 Noble Energy Way sale. West Belt\/Highway 290 and San Felipe\/Voss also posted meaningful activity at approximately 200,000 and 171,000 square feet, respectively.<\/span><\/p>\nOverall market sales totaled 2.56 million square feet in Q1 2026, down slightly from 2.74 million square feet last quarter, reinforcing that capital remains active but focused on select, higher-conviction opportunities.<\/span><\/p>\n![\"\"](\"https:\/\/www.lee-associates.com\/houston\/wp-content\/uploads\/sites\/80\/2026\/07\/2026-Q1-Houston-Citywide-Office-Market-Report-1-2.png\") <\/p>\n
Historical Office Sale Price<\/span><\/strong><\/h3>\nHouston\u2019s office sale pricing continues to reflect a market reset rather than broad stabilization. Historical pricing was highly volatile, with averages peaking above $300 per square foot in 2017\u20132018, then trending lower through the post-pandemic period. From 2019 to 2022, sale prices were uneven and occasionally rebounded above $200 per square foot, but those gains were not sustained. Values weakened again in 2023 and early 2024, often falling below $100 per square foot, and by Q1 2026 the market averaged about $78 per square foot.<\/span><\/p>\nOverall, pricing remains heavily influenced by individual asset quality, location, tenancy, and deal structure, with stronger assets still able to command a premium while older commodity product continues to trade at a discount.<\/span><\/p>\n
\nNotable Sales<\/span><\/h2>\n![\"\"](\"https:\/\/www.lee-associates.com\/houston\/wp-content\/uploads\/sites\/80\/2026\/07\/2026-Q1-Houston-Citywide-Office-Market-Report-2-1-512x350.png\") <\/p>\n
\nOffice Market Statistics<\/span><\/h2>\n <\/p>\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n <\/colgroup>\n\n\nSUBMARKET
\n\/ CLASS<\/th>\n | INVENTORY
\n(SF)<\/th>\n | DIRECT
\nVACANCY
\nRATE<\/th>\n | SUBLEASE
\nVACANCY
\nRATE<\/th>\n | TOTAL
\nVACANCY
\nRATE<\/th>\n | PREVIOUS
\nQUARTER
\nDIRECT
\nVACANCY
\nRATE<\/th>\n | DIRECT
\nASKING
\nGROSS
\nRENT<\/th>\n | CURRENT
\nQUARTER
\nLEASING
\nACTIVITY
\n(SF)<\/th>\n | 12-
\nMONTH
\nLEASING
\nACTIVITY
\n(SF)<\/th>\n | CURRENT
\nQUARTER
\nNET
\nABSORPTION
\n(SF)<\/th>\n | 12-Month
\nNET
\nABSORPTION
\n(SF)<\/th>\n | UNDER
\nCONSTR.
\n(SF)<\/th>\n | YTD
\nDELIVERIES
\n(SF)<\/th>\n<\/tr>\n<\/thead>\n | \n\n| TOTAL HOUSTON MARKET<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 138,744,337<\/td>\n | 24.00%<\/td>\n | 1.60%<\/td>\n | 25.50%<\/td>\n | 23.60%<\/td>\n | $36.48<\/td>\n | 1,875,520<\/td>\n | 7,200,167<\/td>\n | -150,169<\/td>\n | 1,249,153<\/td>\n | 483,654<\/td>\n | 511,580<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 99,537,196<\/td>\n | 21.20%<\/td>\n | 1.00%<\/td>\n | 22.20%<\/td>\n | 21.10%<\/td>\n | $22.53<\/td>\n | 721,159<\/td>\n | 3,387,302<\/td>\n | -30,147<\/td>\n | 259,172<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 238,281,533<\/td>\n | 22.80%<\/td>\n | 1.30%<\/td>\n | 24.10%<\/td>\n | 22.50%<\/td>\n | $31.08<\/td>\n | 2,596,679<\/td>\n | 10,587,469<\/td>\n | -180,316<\/td>\n | 1,508,325<\/td>\n | 483,654<\/td>\n | 511,580<\/td>\n<\/tr>\n | \n| CENTRAL BUSINESS DISTRICT<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 39,409,171<\/td>\n | 24.30%<\/td>\n | 1.50%<\/td>\n | 25.80%<\/td>\n | 24.00%<\/td>\n | $43.08<\/td>\n | 440,054<\/td>\n | 1,558,776<\/td>\n | -116,233<\/td>\n | 825,305<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 11,289,811<\/td>\n | 27.70%<\/td>\n | 0.00%<\/td>\n | 27.70%<\/td>\n | 27.80%<\/td>\n | $13.80<\/td>\n | 405<\/td>\n | 25,822<\/td>\n | 11,286<\/td>\n | 21,338<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 50,698,982<\/td>\n | 25.10%<\/td>\n | 1.10%<\/td>\n | 26.20%<\/td>\n | 24.90%<\/td>\n | $38.88<\/td>\n | 440,459<\/td>\n | 1,584,598<\/td>\n | -104,947<\/td>\n | 846,643<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| SUBURBAN<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 99,335,166<\/td>\n | 23.80%<\/td>\n | 1.60%<\/td>\n | 25.40%<\/td>\n | 23.40%<\/td>\n | $32.96<\/td>\n | 1,435,466<\/td>\n | 5,641,391<\/td>\n | -33,936<\/td>\n | 423,848<\/td>\n | 483,654<\/td>\n | 511,580<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 88,247,385<\/td>\n | 20.30%<\/td>\n | 1.10%<\/td>\n | 21.50%<\/td>\n | 20.20%<\/td>\n | $22.64<\/td>\n | 720,754<\/td>\n | 3,361,480<\/td>\n | -41,433<\/td>\n | 237,834<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 187,582,551<\/td>\n | 22.20%<\/td>\n | 1.40%<\/td>\n | 23.60%<\/td>\n | 21.90%<\/td>\n | $28.44<\/td>\n | 2,156,220<\/td>\n | 9,002,871<\/td>\n | -75,369<\/td>\n | 661,682<\/td>\n | 483,654<\/td>\n | 511,580<\/td>\n<\/tr>\n | \n| ALLEN PARKWAY\/MIDTOWN<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 2,740,049<\/td>\n | 17.90%<\/td>\n | 2.20%<\/td>\n | 20.10%<\/td>\n | 17.10%<\/td>\n | $37.56<\/td>\n | 11,751<\/td>\n | 229,443<\/td>\n | -21,174<\/td>\n | 1,710<\/td>\n | 337,651<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 3,900,155<\/td>\n | 8.70%<\/td>\n | 0.20%<\/td>\n | 8.90%<\/td>\n | 8.30%<\/td>\n | $30.84<\/td>\n | 16,539<\/td>\n | 81,606<\/td>\n | -17,293<\/td>\n | -21,638<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 6,640,204<\/td>\n | 12.50%<\/td>\n | 1.10%<\/td>\n | 13.50%<\/td>\n | 11.90%<\/td>\n | $35.40<\/td>\n | 28,290<\/td>\n | 311,049<\/td>\n | -38,467<\/td>\n | -19,928<\/td>\n | 337,651<\/td>\n | 0<\/td>\n<\/tr>\n | \n| BAYTOWN<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 584,259<\/td>\n | 2.30%<\/td>\n | 0.00%<\/td>\n | 2.30%<\/td>\n | 1.70%<\/td>\n | $16.80<\/td>\n | 0<\/td>\n | 2,605<\/td>\n | -3,543<\/td>\n | -938<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 584,259<\/td>\n | 2.30%<\/td>\n | 0.00%<\/td>\n | 2.30%<\/td>\n | 1.70%<\/td>\n | $16.80<\/td>\n | 0<\/td>\n | 2,605<\/td>\n | -3,543<\/td>\n | -938<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| BELLAIRE<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 1,269,957<\/td>\n | 24.70%<\/td>\n | 0.10%<\/td>\n | 24.80%<\/td>\n | 24.10%<\/td>\n | $30.84<\/td>\n | 975<\/td>\n | 52,181<\/td>\n | -8,410<\/td>\n | -33,331<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 3,004,137<\/td>\n | 13.30%<\/td>\n | 0.10%<\/td>\n | 13.50%<\/td>\n | 13.40%<\/td>\n | $27.60<\/td>\n | 37,333<\/td>\n | 94,827<\/td>\n | 1,993<\/td>\n | 11,827<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 4,274,094<\/td>\n | 16.70%<\/td>\n | 0.10%<\/td>\n | 16.80%<\/td>\n | 16.60%<\/td>\n | $29.76<\/td>\n | 38,308<\/td>\n | 147,008<\/td>\n | -6,417<\/td>\n | -21,504<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| CONROE\/MONTGOMERY COUNTY<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 60,000<\/td>\n | 0.00%<\/td>\n | 0.00%<\/td>\n | 0.00%<\/td>\n | 0.00%<\/td>\n | n\/a<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 536,888<\/td>\n | 11.20%<\/td>\n | 0.00%<\/td>\n | 11.20%<\/td>\n | 12.50%<\/td>\n | $32.16<\/td>\n | 8,046<\/td>\n | 19,816<\/td>\n | 7,102<\/td>\n | 54,217<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 596,888<\/td>\n | 10.00%<\/td>\n | 0.00%<\/td>\n | 10.00%<\/td>\n | 11.20%<\/td>\n | $32.16<\/td>\n | 8,046<\/td>\n | 19,816<\/td>\n | 7,102<\/td>\n | 54,217<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| FORT BEND COUNTY\/SUGAR LAND<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 2,543,122<\/td>\n | 33.7%<\/td>\n | 0.2%<\/td>\n | 33.9%<\/td>\n | 33.2%<\/td>\n | $34.08<\/td>\n | 22,565<\/td>\n | 107,705<\/td>\n | -11,198<\/td>\n | -24,435<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 2,330,968<\/td>\n | 12.5%<\/td>\n | 0.5%<\/td>\n | 13.0%<\/td>\n | 12.2%<\/td>\n | $23.16<\/td>\n | 22,863<\/td>\n | 125,393<\/td>\n | -6,414<\/td>\n | 156,276<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 4,874,090<\/td>\n | 23.5%<\/td>\n | 0.4%<\/td>\n | 23.9%<\/td>\n | 23.2%<\/td>\n | $30.48<\/td>\n | 45,428<\/td>\n | 233,098<\/td>\n | -17,612<\/td>\n | 131,841<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| FM 1960\/BELTWAY 8<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 413,139<\/td>\n | 60.6%<\/td>\n | 0.0%<\/td>\n | 60.6%<\/td>\n | 60.4%<\/td>\n | 15.24<\/td>\n | 0<\/td>\n | 13,316<\/td>\n | -707<\/td>\n | -20,863<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 2,228,046<\/td>\n | 20.0%<\/td>\n | 0.0%<\/td>\n | 20.0%<\/td>\n | 21.2%<\/td>\n | 14.99<\/td>\n | 39,210<\/td>\n | 104,931<\/td>\n | 27,102<\/td>\n | 85,437<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 2,641,185<\/td>\n | 26.3%<\/td>\n | 0.0%<\/td>\n | 26.3%<\/td>\n | 27.3%<\/td>\n | $15.06<\/td>\n | 39,210<\/td>\n | 118,247<\/td>\n | 26,395<\/td>\n | 64,574<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| FM 1960\/HIGHWAY 249<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 2,573,667<\/td>\n | 40.7%<\/td>\n | 17.4%<\/td>\n | 58.1%<\/td>\n | 39.9%<\/td>\n | $29.40<\/td>\n | 29,488<\/td>\n | 61,570<\/td>\n | -20,370<\/td>\n | 24,513<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 4,014,188<\/td>\n | 25.5%<\/td>\n | 0.2%<\/td>\n | 25.7%<\/td>\n | 28.1%<\/td>\n | $23.28<\/td>\n | 19,538<\/td>\n | 101,075<\/td>\n | 107,337<\/td>\n | 37,178<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 6,587,855<\/td>\n | 31.4%<\/td>\n | 6.9%<\/td>\n | 38.3%<\/td>\n | 32.7%<\/td>\n | $26.40<\/td>\n | 49,026<\/td>\n | 162,645<\/td>\n | 86,967<\/td>\n | 61,691<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| GREENWAY PLAZA<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 7,869,288<\/td>\n | 27.1%<\/td>\n | 0.3%<\/td>\n | 27.4%<\/td>\n | 26.8%<\/td>\n | $38.64<\/td>\n | 25,842<\/td>\n | 333,497<\/td>\n | -23,463<\/td>\n | -159,169<\/td>\n | 146,003<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 3,065,945<\/td>\n | 20.6%<\/td>\n | 0.2%<\/td>\n | 20.8%<\/td>\n | 19.7%<\/td>\n | $30.00<\/td>\n | 38,788<\/td>\n | 108,958<\/td>\n | -27,076<\/td>\n | -51,419<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 10,935,233<\/td>\n | 25.3%<\/td>\n | 0.3%<\/td>\n | 25.5%<\/td>\n | 24.8%<\/td>\n | $25.52<\/td>\n | 64,630<\/td>\n | 442,455<\/td>\n | -50,539<\/td>\n | -210,588<\/td>\n | 146,003<\/td>\n | 0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n <\/colgroup>\n\n\nSUBMARKET
\n\/ CLASS<\/th>\n | INVENTORY
\n(SF)<\/th>\n | DIRECT
\nVACANCY
\nRATE<\/th>\n | SUBLEASE
\nVACANCY
\nRATE<\/th>\n | TOTAL
\nVACANCY
\nRATE<\/th>\n | PREVIOUS
\nQUARTER
\nDIRECT
\nVACANCY
\nRATE<\/th>\n | DIRECT
\nASKING
\nGROSS
\nRENT<\/th>\n | CURRENT
\nQUARTER
\nLEASING
\nACTIVITY
\n(SF)<\/th>\n | 12-
\nMONTH
\nLEASING
\nACTIVITY
\n(SF)<\/th>\n | CURRENT
\nQUARTER
\nNET
\nABSORPTION
\n(SF)<\/th>\n | 12-Month
\nNET
\nABSORPTION
\n(SF)<\/th>\n | UNDER
\nCONSTR.
\n(SF)<\/th>\n | YTD
\nDELIVERIES
\n(SF)<\/th>\n<\/tr>\n<\/thead>\n | \n\n| KATY\/GRAND PARKWAY WEST<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 1,638,724<\/td>\n | 20.7%<\/td>\n | 0.0%<\/td>\n | 20.7%<\/td>\n | 19.6%<\/td>\n | $36.00<\/td>\n | 3,122<\/td>\n | 203,607<\/td>\n | (19,348)<\/td>\n | (97,270)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 778,693<\/td>\n | 8.8%<\/td>\n | 0.0%<\/td>\n | 8.8%<\/td>\n | 8.6%<\/td>\n | $32.88<\/td>\n | 14,733<\/td>\n | 30,301<\/td>\n | (1,352)<\/td>\n | 4,858<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 2,417,417<\/td>\n | 16.9%<\/td>\n | 0.0%<\/td>\n | 16.9%<\/td>\n | 16.0%<\/td>\n | $35.04<\/td>\n | 17,855<\/td>\n | 233,908<\/td>\n | (20,700)<\/td>\n | (92,412)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| KINGWOOD\/HUMBLE<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 270,000<\/td>\n | 22.2%<\/td>\n | 0.0%<\/td>\n | 22.2%<\/td>\n | 0.0%<\/td>\n | $0.00<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 1,172,156<\/td>\n | 5.1%<\/td>\n | 0.6%<\/td>\n | 5.7%<\/td>\n | 5.1%<\/td>\n | $20.76<\/td>\n | 4,598<\/td>\n | 14,792<\/td>\n | 1,974<\/td>\n | 7,237<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 1,442,156<\/td>\n | 8.3%<\/td>\n | 0.5%<\/td>\n | 8.8%<\/td>\n | 4.2%<\/td>\n | $20.76<\/td>\n | 4,598<\/td>\n | 14,792<\/td>\n | 1,974<\/td>\n | 7,237<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| NASA\/CLEAR LAKE<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 1,999,597<\/td>\n | 8.2%<\/td>\n | 1.2%<\/td>\n | 9.4%<\/td>\n | 6.9%<\/td>\n | $29.15<\/td>\n | 0<\/td>\n | 92,097<\/td>\n | 48,054<\/td>\n | 65,060<\/td>\n | 0<\/td>\n | 80,000<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 3,467,076<\/td>\n | 22.4%<\/td>\n | 0.0%<\/td>\n | 22.4%<\/td>\n | 23.1%<\/td>\n | $22.58<\/td>\n | 20,228<\/td>\n | 112,002<\/td>\n | 27,186<\/td>\n | (654)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 5,466,673<\/td>\n | 17.2%<\/td>\n | 0.5%<\/td>\n | 17.6%<\/td>\n | 17.3%<\/td>\n | $23.48<\/td>\n | 20,228<\/td>\n | 204,099<\/td>\n | 75,240<\/td>\n | 64,406<\/td>\n | 0<\/td>\n | 80,000<\/td>\n<\/tr>\n | \n| NORTH BELT\/GREENSPOINT<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 4,571,747<\/td>\n | 48.9%<\/td>\n | 0.3%<\/td>\n | 49.2%<\/td>\n | 50.4%<\/td>\n | $18.99<\/td>\n | 8,628<\/td>\n | 90,982<\/td>\n | 66,516<\/td>\n | 47,056<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 6,707,996<\/td>\n | 37.6%<\/td>\n | 0.1%<\/td>\n | 37.7%<\/td>\n | 37.4%<\/td>\n | $15.15<\/td>\n | 45,313<\/td>\n | 190,103<\/td>\n | (11,722)<\/td>\n | (108,602)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 11,279,743<\/td>\n | 42.2%<\/td>\n | 0.2%<\/td>\n | 42.4%<\/td>\n | 42.7%<\/td>\n | $17.40<\/td>\n | 53,941<\/td>\n | 281,085<\/td>\n | 54,794<\/td>\n | (61,546)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| NORTH LOOP WEST<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 1,508,584<\/td>\n | 25.4%<\/td>\n | 0.0%<\/td>\n | 25.4%<\/td>\n | 17.0%<\/td>\n | $24.72<\/td>\n | 34,923<\/td>\n | 124,508<\/td>\n | (126,910)<\/td>\n | (61,801)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 2,156,023<\/td>\n | 18.8%<\/td>\n | 0.8%<\/td>\n | 19.6%<\/td>\n | 19.0%<\/td>\n | $20.47<\/td>\n | 47,696<\/td>\n | 202,330<\/td>\n | 4,460<\/td>\n | 2,502<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 3,664,607<\/td>\n | 21.5%<\/td>\n | 0.5%<\/td>\n | 22.0%<\/td>\n | 18.1%<\/td>\n | $22.76<\/td>\n | 82,619<\/td>\n | 326,838<\/td>\n | (122,450)<\/td>\n | (59,299)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| NORTHEAST<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 273,223<\/td>\n | 1.0%<\/td>\n | 0.0%<\/td>\n | 1.0%<\/td>\n | 1.0%<\/td>\n | n\/a<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 514,631<\/td>\n | 3.2%<\/td>\n | 0.0%<\/td>\n | 3.2%<\/td>\n | 2.2%<\/td>\n | $24.53<\/td>\n | 2,487<\/td>\n | 11,002<\/td>\n | (5,080)<\/td>\n | (2,768)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 787,854<\/td>\n | 2.4%<\/td>\n | 0.0%<\/td>\n | 2.4%<\/td>\n | 1.8%<\/td>\n | $24.53<\/td>\n | 2,487<\/td>\n | 11,002<\/td>\n | (5,080)<\/td>\n | (2,768)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| NORTHWEST<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 1,003,410<\/td>\n | 23.3%<\/td>\n | 0.9%<\/td>\n | 24.3%<\/td>\n | 22.9%<\/td>\n | $20.53<\/td>\n | 16,908<\/td>\n | 132,358<\/td>\n | (4,168)<\/td>\n | 74,841<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 3,994,192<\/td>\n | 8.8%<\/td>\n | 1.0%<\/td>\n | 9.8%<\/td>\n | 8.4%<\/td>\n | $16.73<\/td>\n | 7,268<\/td>\n | 68,731<\/td>\n | (13,851)<\/td>\n | (13,754)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 4,997,602<\/td>\n | 11.7%<\/td>\n | 1.0%<\/td>\n | 12.7%<\/td>\n | 11.3%<\/td>\n | $18.28<\/td>\n | 24,176<\/td>\n | 201,089<\/td>\n | (18,019)<\/td>\n | 61,087<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| RICHMOND\/FOUNTAINVIEW<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 738,557<\/td>\n | 16.1%<\/td>\n | 0.0%<\/td>\n | 16.1%<\/td>\n | 19.7%<\/td>\n | $16.26<\/td>\n | 4,002<\/td>\n | 6,960<\/td>\n | 26,927<\/td>\n | 22,482<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 738,557<\/td>\n | 16.1%<\/td>\n | 0.0%<\/td>\n | 16.1%<\/td>\n | 19.7%<\/td>\n | $16.26<\/td>\n | 4,002<\/td>\n | 6,960<\/td>\n | 26,927<\/td>\n | 22,482<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| SAN FELIPE\/VOSS<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 2,398,656<\/td>\n | 26.8%<\/td>\n | 2.7%<\/td>\n | 29.5%<\/td>\n | 28.5%<\/td>\n | $31.78<\/td>\n | 44,836<\/td>\n | 209,690<\/td>\n | 40,739<\/td>\n | 131,794<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 2,797,442<\/td>\n | 24.3%<\/td>\n | 0.0%<\/td>\n | 24.3%<\/td>\n | 23.1%<\/td>\n | $23.04<\/td>\n | 68,694<\/td>\n | 169,694<\/td>\n | (33,696)<\/td>\n | 3,011<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 5,196,098<\/td>\n | 25.4%<\/td>\n | 1.2%<\/td>\n | 26.7%<\/td>\n | 25.6%<\/td>\n | $26.85<\/td>\n | 113,530<\/td>\n | 379,384<\/td>\n | 7,043<\/td>\n | 134,805<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| SOUTH<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 586,103<\/td>\n | 3.5%<\/td>\n | 0.0%<\/td>\n | 3.5%<\/td>\n | 3.5%<\/td>\n | $29.60<\/td>\n | 0<\/td>\n | 11,062<\/td>\n | 0<\/td>\n | 12,166<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 498,805<\/td>\n | 7.1%<\/td>\n | 0.0%<\/td>\n | 7.1%<\/td>\n | 7.1%<\/td>\n | $29.70<\/td>\n | 0<\/td>\n | 428<\/td>\n | 144<\/td>\n | (8,602)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 1,084,908<\/td>\n | 5.2%<\/td>\n | 0.0%<\/td>\n | 5.2%<\/td>\n | 5.2%<\/td>\n | $29.66<\/td>\n | 0<\/td>\n | 11,490<\/td>\n | 144<\/td>\n | 3,564<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| SOUTH MAIN\/MEDICAL CENTER<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 250,000<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | n\/a<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 1,408,148<\/td>\n | 9.3%<\/td>\n | 0.0%<\/td>\n | 9.3%<\/td>\n | 7.9%<\/td>\n | $18.25<\/td>\n | 3,005<\/td>\n | 69,362<\/td>\n | (19,876)<\/td>\n | 31,647<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 1,658,148<\/td>\n | 7.9%<\/td>\n | 0.0%<\/td>\n | 7.9%<\/td>\n | 6.7%<\/td>\n | $18.25<\/td>\n | 3,005<\/td>\n | 69,362<\/td>\n | (19,876)<\/td>\n | 31,647<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| SOUTHEAST<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 228,543<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | n\/a<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 228,543<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | 0.0%<\/td>\n | n\/a<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| SOUTHWEST\/BELTWAY 8<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 1,070,041<\/td>\n | 34.5%<\/td>\n | 0.0%<\/td>\n | 34.5%<\/td>\n | 34.6%<\/td>\n | $17.76<\/td>\n | 8,111<\/td>\n | 27,955<\/td>\n | 1,029<\/td>\n | (43,821)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 7,080,360<\/td>\n | 19.3%<\/td>\n | 6.1%<\/td>\n | 25.4%<\/td>\n | 18.5%<\/td>\n | $20.90<\/td>\n | 16,882<\/td>\n | 172,346<\/td>\n | (56,645)<\/td>\n | 170,468<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 8,150,401<\/td>\n | 21.3%<\/td>\n | 5.3%<\/td>\n | 26.6%<\/td>\n | 20.7%<\/td>\n | $19.94<\/td>\n | 24,993<\/td>\n | 200,301<\/td>\n | (55,616)<\/td>\n | 126,647<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| SOUTHWEST FAR<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 80,536<\/td>\n | 38.1%<\/td>\n | 0.0%<\/td>\n | 38.1%<\/td>\n | 42.1%<\/td>\n | $37.53<\/td>\n | 4,536<\/td>\n | 4,536<\/td>\n | 3,264<\/td>\n | 7,517<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 528,028<\/td>\n | 0.4%<\/td>\n | 0.0%<\/td>\n | 0.4%<\/td>\n | 0.4%<\/td>\n | n\/a<\/td>\n | 0<\/td>\n | 0<\/td>\n | 0<\/td>\n | 53,600<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 608,564<\/td>\n | 5.4%<\/td>\n | 0.0%<\/td>\n | 5.4%<\/td>\n | 5.9%<\/td>\n | $37.53<\/td>\n | 4,536<\/td>\n | 4,536<\/td>\n | 3,264<\/td>\n | 61,117<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| WEST BELT\/HIGHWAY 290<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 3,289,640<\/td>\n | 23.9%<\/td>\n | 3.2%<\/td>\n | 27.1%<\/td>\n | 24.2%<\/td>\n | $31.82<\/td>\n | 137,623<\/td>\n | 291,920<\/td>\n | 10,471<\/td>\n | 151,211<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 2,209,060<\/td>\n | 31.3%<\/td>\n | 0.5%<\/td>\n | 31.8%<\/td>\n | 30.4%<\/td>\n | $24.18<\/td>\n | 2,492<\/td>\n | 33,634<\/td>\n | (18,248)<\/td>\n | 6,730<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 5,498,700<\/td>\n | 26.9%<\/td>\n | 2.1%<\/td>\n | 29.0%<\/td>\n | 26.7%<\/td>\n | $28.29<\/td>\n | 140,115<\/td>\n | 325,554<\/td>\n | (7,777)<\/td>\n | 157,941<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| WEST LOOP\/GALLERIA<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 17,609,603<\/td>\n | 32.3%<\/td>\n | 0.8%<\/td>\n | 33.2%<\/td>\n | 32.1%<\/td>\n | $39.61<\/td>\n | 205,703<\/td>\n | 1,005,802<\/td>\n | (35,362)<\/td>\n | 119,596<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 6,633,561<\/td>\n | 31.2%<\/td>\n | 0.3%<\/td>\n | 31.5%<\/td>\n | 31.5%<\/td>\n | $29.41<\/td>\n | 50,001<\/td>\n | 312,386<\/td>\n | 19,372<\/td>\n | 1,075<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 24,243,164<\/td>\n | 32.0%<\/td>\n | 0.7%<\/td>\n | 32.7%<\/td>\n | 32.0%<\/td>\n | $37.07<\/td>\n | 255,704<\/td>\n | 1,318,188<\/td>\n | (15,990)<\/td>\n | 120,671<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| WESTCHASE<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 9,865,026<\/td>\n | 26.2%<\/td>\n | 0.9%<\/td>\n | 27.1%<\/td>\n | 26.7%<\/td>\n | $32.17<\/td>\n | 255,411<\/td>\n | 652,595<\/td>\n | 48,130<\/td>\n | (76,195)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 7,390,901<\/td>\n | 25.0%<\/td>\n | 3.6%<\/td>\n | 28.6%<\/td>\n | 24.7%<\/td>\n | $19.16<\/td>\n | 39,216<\/td>\n | 286,800<\/td>\n | (24,607)<\/td>\n | 49,028<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 17,255,927<\/td>\n | 25.7%<\/td>\n | 2.1%<\/td>\n | 27.7%<\/td>\n | 25.8%<\/td>\n | $27.67<\/td>\n | 294,627<\/td>\n | 939,395<\/td>\n | 23,523<\/td>\n | (27,167)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| WOODLANDS<\/td>\n<\/tr>\n | \n| Class A<\/td>\n | 13,444,932<\/td>\n | 8.2%<\/td>\n | 1.0%<\/td>\n | 9.2%<\/td>\n | 8.4%<\/td>\n | $47.74<\/td>\n | 116,923<\/td>\n | 706,976<\/td>\n | 31,981<\/td>\n | 411,409<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| Class B<\/td>\n | 3,915,247<\/td>\n | 14.7%<\/td>\n | 2.5%<\/td>\n | 17.1%<\/td>\n | 14.6%<\/td>\n | $26.99<\/td>\n | 31,542<\/td>\n | 196,375<\/td>\n | (1,176)<\/td>\n | (65,716)<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n | \n| TOTAL<\/td>\n | 17,360,179<\/td>\n | 9.7%<\/td>\n | 1.3%<\/td>\n | 11.0%<\/td>\n | 9.8%<\/td>\n | $41.70<\/td>\n | 148,465<\/td>\n | 903,351<\/td>\n | 30,805<\/td>\n | 345,693<\/td>\n | 0<\/td>\n | 0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nOutlook<\/span><\/h2>\n <\/p>\n Houston\u2019s office market is moving through a gradual, quality-driven recovery, but the pace remains uneven and highly asset-specific.<\/span><\/strong><\/p>\n\n- The sharp disruption caused by COVID continues to shape occupier behavior, leasing patterns, and development decisions across Houston and other major office markets. While pricing has remained relatively resilient, vacancy is still elevated, absorption remains inconsistent, and demand continues to concentrate in the highest-quality buildings.<\/span><\/li>\n
- Looking ahead, Houston should continue to stabilize through the balance of 2026, though the recovery is unlikely to be broad-based or linear. Tenants remain active, but they are leasing more selectively, favoring newer, amenity-rich, efficient buildings in well-located submarkets. That dynamic should continue to support Class A rent performance, while older Class B and commodity assets remain under greater pressure from elevated availability, slower leasing velocity, and the need for capital improvements or repositioning.<\/span><\/li>\n
- On the supply side, the limited construction pipeline is a constructive sign for long-term market balance. With few speculative projects moving forward, Houston is less likely to face meaningful new supply pressure in the near term. Instead, the market\u2019s recovery will depend more on the gradual absorption of existing space, improvement in tenant confidence, and continued normalization of office-using employment. Capital markets activity should remain selective as investors continue to favor well-located, institutional-quality product and approach challenged assets with greater caution.<\/span><\/li>\n
- Overall, Houston\u2019s office market is expected to remain defined by stable pricing, selective leasing, and slow but measurable recovery. The strongest performance should remain concentrated in premier assets and submarkets, while the broader market continues to work through the lasting effects of the post-COVID reset. Incremental improvement is underway, but full recovery will likely take time.<\/span><\/li>\n<\/ul>\n
<\/p>\n Key Risks & Opportunities<\/span><\/p>\n\n- Continued flight to quality supporting premier assets<\/span><\/li>\n
- Limited new supply helping restrain future oversupply<\/span><\/li>\n
- Elevated vacancy and uneven absorption delaying full recovery<\/span><\/li>\n<\/ul>\n
\nEconomic Update<\/span><\/h2>\n![\"\"](\"https:\/\/www.lee-associates.com\/houston\/wp-content\/uploads\/sites\/80\/2026\/07\/2026-Q1-Houston-Citywide-Office-Market-Report-3-1-512x175.png\") <\/p>\n
<\/p>\n Houston\u2019s economy remains supportive of office demand, with steady employment, moderating inflation, and continued activity across the region\u2019s core industries.<\/span><\/strong><\/p>\nTotal employment stood at approximately 3.46 million entering 2026, while unemployment remained in the low-4% range and broadly in line with the national average. Hiring across professional services, healthcare, trade, and transportation continues to reinforce the region\u2019s diversified employment base.<\/span><\/p>\nInflation has moderated from prior-cycle highs, giving occupiers greater visibility into operating costs and business planning. At the same time, Houston continues to benefit from the scale of its <\/span>energy complex, global trade connections, and population growth, all of which support broader business activity. Port activity and continued investment across infrastructure, logistics, and services also remain supportive of regional growth.<\/span><\/p>\nFor the office market, the key theme is stability rather than acceleration. Economic conditions remain constructive enough to support leasing activity, but not yet strong enough to produce a broad-based office rebound. As a result, demand should continue to favor higher-quality, well-located buildings, while the broader recovery in occupancy remains gradual through 2026.<\/span><\/p>\n
\nOffice Employment Growth<\/span><\/h2>\n![\"\"](\"https:\/\/www.lee-associates.com\/houston\/wp-content\/uploads\/sites\/80\/2026\/07\/2026-Q1-Houston-Citywide-Office-Market-Report-4-1.png\") <\/p>\n
Growth By Industry<\/span><\/strong><\/p>\nJanuary 2026 – Year-Over-Year Change<\/span><\/p>\nOffice employment growth remains modest, with gains concentrated in service-oriented sectors and declines in information and financial activities.<\/span><\/strong><\/p>\nHouston\u2019s office sectors showed mixed year-over-year performance as of January 2026. Professional and business services, the largest office-using sector, grew 0.6% to 560,400 jobs, reflecting steady though moderating demand for corporate services. Education and health services increased 1.9% to 472,300 jobs, while leisure and hospitality rose 1.6%, supporting broader employment growth across the region.<\/span><\/p>\nHowever, several traditional office sectors remained under pressure. Information declined 3.8%, and financial activities fell 1.1%, signaling continued softness in tech- and finance-related employment. Government employment edged down 0.3%, while other services were essentially flat. Overall, Houston\u2019s office employment base is still expanding, but growth is increasingly concentrated in select service sectors rather than broad-based across all categories. That pattern supports gradual improvement in office demand, but it also reinforces the market\u2019s uneven recovery.<\/span><\/p>\n![\"\"](\"https:\/\/www.lee-associates.com\/houston\/wp-content\/uploads\/sites\/80\/2026\/07\/2026-Q1-Houston-Citywide-Office-Market-Report-5.png\") <\/p>\n
Employment Growth<\/span><\/strong><\/p>\nJanuary 2026 – 10 Year Change<\/span><\/p>\nHouston\u2019s office employment growth has moderated after a strong post-pandemic rebound, returning to a more sustainable pace.<\/span><\/strong><\/p>\nOver the past decade, local office employment trends have generally tracked Texas and the U.S., with periods of outperformance during stronger expansion cycles. From 2016 through 2020, Houston recorded annual growth between 1.4% and 2.9%, supported by professional services expansion, energy-sector stability, and population growth.<\/span><\/p>\nThe pandemic drove a sharp contraction in 2021, when Houston office employment fell 5.2% slightly less severe than the national decline but steeper than Texas. That pullback was followed by a strong rebound in 2022 and 2023, when growth reached 5.7% and 5.6%, respectively, as office-using sectors recovered. Since 2024, growth has eased back to more measured levels, with Houston rising 1.5% in 2025 and 0.6% in 2026. The moderation suggests the market is moving out of recovery mode and into a slower, more normalized expansion cycle, which should support office demand growth but not enough to materially compress vacancy in the near term.<\/span><\/p>\n
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