Houston’s office market is showing renewed strength with consecutive quarters of positive absorption and declining vacancy.

The Houston office market continued its upward trend, recording 554,863 square feet of positive absorption in the third quarter, bringing the year-to-date total to 1.1 million square feet — the first sustained positive absorption since 2019. This gain helped offset early-year softness and underscores improving tenant activity.
NET ABSORPTION
LEASING ACTIVITY
CONSTRUCTION & RENTS
New development remains limited. One Bridgeland Green, a 49,117-square-foot mass timber office, delivered 80.3% preleased. Three additional projects underway — two already 100% preleased — are slated for 2026 delivery. Asking rents moved higher, with Class A averaging $35.96 PSF, up 8.3% from last quarter, while overall rents climbed to $30.74 PSF, a 6.1% quarterly increase and 2.0% year over year.
OUTLOOK
Houston’s office market continues in recovery mode. Positive net absorption, steady leasing in quality assets and limited new supply are strengthening fundamentals. Sustained leasing momentum through late 2025 and into 2026 will be key to driving continued improvement.

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