Houston Office Market Report

Demand improving as supply pressure abates. Houston is one of only seven major U.S. markets that have not recorded a quarterly net relinquishment of office space since early 2024. The total vacant space in Houston by the end of this year is only 11 percent higher than in 2019; this is, by far, the lowest increase among the top 10 U.S. markets by total inventory. Taken together, supply and demand should remain largely in balance this year. Suburban office absorption is steady, especially in submarkets like The Woodlands, Northwest Houston, and West Loop, which offer short commutes to many of the metro’s fast-growing western neighborhoods. The recovery in downtown office demand also stood out in 2025, as lower supply pressure and strong absorption contributed to steady vacancy compression. With about 80 percent of this year’s deliveries pre-leased, the market is well positioned for further improvement in office fundamentals.