Figures

Houston Office Figures - Q4 2025

January 7, 2026 5 Minute Read

Looking for a PDF of this content?

Download

  • Bifurcation between the newest Class A and older properties remains the dominant trend that shaped the Houston office market in 2025. While lower quality assets continue to lose occupancy, demand for Class A space built since 2015 is accelerating, driving rental rates above $50.00 NNN and pushing vacancy in post-2015 buildings down to 8.5%.
  •  
    Net absorption ended the year on a softer note, dipping into the red for the first time since Q1. If not for Marathon’s vacating of 440K SF at 990 Town & Country after its acquisition by ConocoPhillips, the Q4 would have reported positive occupancy growth. Looking ahead absorption is expected to move positive in the first quarter of 2026 given anticipated tenant moves.
  •  
    Q4 saw a slowing in leasing activity, hitting just over 1 million SF signed across Houston after several large transactions were signed in Q3. 2025 closed out with 6.4 million SF in signed leases, 2 million SF below 2024’s total. Despite the decline in completed lease volume, touring activity within the market remains high.
  •  
    This tightening of available high-quality space has fueled an active sublease market, as tenants struggling to secure Class A space are moving quickly to capture desirable options as soon as they become available.