{"id":12524,"date":"2026-09-08T19:52:35","date_gmt":"2026-09-08T19:52:35","guid":{"rendered":"https:\/\/www.lee-associates.com\/houston\/?p=12524"},"modified":"2026-09-08T20:25:29","modified_gmt":"2026-09-08T20:25:29","slug":"houstons-office-recovery-is-becoming-a-tale-of-two-markets","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/houston\/2026\/09\/08\/houstons-office-recovery-is-becoming-a-tale-of-two-markets\/","title":{"rendered":"Houston\u2019s Office Recovery Is Becoming a Tale of Two Markets"},"content":{"rendered":"

\"\"<\/p>\n

HOUSTON, TEXAS \u2013 September 8, 2026<\/strong>\u00a0\u2013\u00a0Mary Doetterl<\/a>, Research Director, Lee & Associates \u2013 Houston<\/p>\n

Signs of stabilization are emerging across Houston\u2019s office market, but the benefits are not being shared equally. The more important story emerging in 2026 is the widening performance gap between higher-quality Class A properties and older office buildings.<\/p>\n

During the second quarter, Houston recorded 496,066 square feet of positive net absorption, a more than 773,000-square-foot improvement from Q1. Direct vacancy declined 20 basis points to 22.9%, while asking gross rents increased 1.3% quarter over quarter to $31.48 per square foot. Those numbers point toward stabilization, but looking deeper reveals where much of the momentum is concentrated.<\/p>\n

Class A asking gross rents reached $36.63 per square foot, compared with $23.23 for Class B, creating a pricing gap of approximately $13.40 per square foot. Tenants continue prioritizing newer, amenity-rich buildings that offer efficient layouts, modern workplace environments, and locations that help companies attract and retain employees.<\/p>\n

\"\"<\/p>\n

\u201cHouston\u2019s office recovery is becoming increasingly asset-specific. The headline numbers are improving, but the more important story is where demand is going. Tenants continue to prioritize quality, and that is creating a widening performance gap between well-positioned Class A properties and older office buildings,\u201d Mary Doetterl<\/a>, Research Director, Lee & Associates – Houston<\/p><\/blockquote>\n

For landlords, the message is increasingly clear. Quality, amenities, capital improvements, and building positioning matter. Older properties are not necessarily obsolete, but many will need reinvestment or repositioning to compete effectively for today\u2019s tenants.<\/p>\n

\"\"<\/p>\n

\u201cTenants have more choices today, and they\u2019re using that leverage to focus on quality. Buildings that offer the right location, amenities, ownership commitment, and overall workplace experience are separating themselves from the competition. For landlords, positioning the asset correctly has never been more important,\u201d Blake Virgilio<\/a>, SIOR, CCIM, Principal, Lee & Associates – Houston<\/p><\/blockquote>\n

Houston\u2019s office recovery will likely remain measured, particularly with vacancy still elevated. But limited new construction, improving absorption, and continued tenant preference for quality are creating opportunities.<\/p>\n

The question is no longer simply whether Houston\u2019s office market is recovering. It is which buildings will participate in that recovery.<\/p>\n

About Lee & Associates \u2013 Houston<\/u><\/strong><\/p>\n

Lee & Associates \u2013 Houston is a fully-integrated commercial real estate company with unrivaled market knowledge and an unwavering commitment to integrity and excellence. Our business-minded brokers specialize in office, industrial, and land real estate investments. Lee & Associates \u2013 Houston is part of a nationwide network of brokers in more than 80 offices in North America. The brokerage is uniquely qualified to support our client\u2019s real estate needs in Houston, across Texas, and throughout the US. For more information, visit\u00a0lee-associates.com\/houston<\/a>.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

HOUSTON, TEXAS \u2013 September 8, 2026\u00a0\u2013\u00a0Mary Doetterl, Research Director, Lee & Associates \u2013 Houston Signs of stabilization are emerging across Houston\u2019s office market, but the benefits are not being shared equally. The more important story emerging in 2026 is the widening performance gap between higher-quality Class A properties and older office buildings. During the second quarter, Houston recorded 496,066 square feet of positive net absorption, a more than 773,000-square-foot improvement from Q1. Direct vacancy declined…<\/p>\n","protected":false},"author":275,"featured_media":12526,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"\nHouston\u2019s Office Recovery Is Becoming a Tale of Two Markets - Lee & Associates | Houston<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lee-associates.com\/houston\/2026\/09\/08\/houstons-office-recovery-is-becoming-a-tale-of-two-markets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Houston\u2019s Office Recovery Is Becoming a Tale of Two Markets\" \/>\n<meta property=\"og:description\" content=\"HOUSTON, TEXAS \u2013 September 8, 2026\u00a0\u2013\u00a0Mary Doetterl, Research Director, Lee & Associates \u2013 Houston Signs of stabilization are emerging across Houston\u2019s office market, but the benefits are not being shared equally. 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