Figures

Houston Office Figures - Q4 2024

January 3, 2025 5 Minute Read

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  • Houston concluded the year with nearly 3 million sq. ft. of negative absorption, primarily due to anticipated relocations and contractions that resulted in an uptick in vacancy.
  • Law firm activity is driving the tightening within premium offices, significantly expanding their presence in the CBD’s newest office buildings. This quarter alone, 182,000 sq. ft. was leased at Texas Tower, achieving 91.3% leased within two years of its completion.
  • There are two building under construction to end the year: CityCentre Six and The RO, which are collectively 78% pre-leased.
  • Conversion and redevelopment potential remains a key discussion point, with Schlumberger’s former campus being the latest candidate. This year, Houston announced 3.7 million sq. ft. of office buildings slated for conversion.
  • The market, dominated by the energy industry, saw a transaction volume of 1.6 million sq. ft. in Q4, representing 17% of the total 2024 leasing activity of 7.4 million sq. ft.
  • Rental rates experienced a modest quarter-over-quarter increase, coupled with a 2% year-over-year growth, reaching $31.83 per sq. ft.