Q1 2026 Houston Office Market Report

Houston’s office market had a quiet first quarter, with total vacancy edging up slightly to 24.0% as a modest wave of new building deliveries outpaced tenant move-ins. However, total availability – space being marketed for lease but not yet vacant - declined to 23.8%, its lowest level in two years. Sublease inventory also declined modestly, suggesting the post-pandemic sublease wave has peaked. The quarter’s defining theme remains bifurcation: occupancy and leasing among the premium buildings remains robust, while older Class A and commodity properties continue to shed occupancy. 

 

Flight-to-quality drove the quarter’s largest transactions: Boardwalk Pipeline signed the market’s biggest deal: 143,000 SF at 990 Town & Country in Katy Freeway East, relocating from Greenway Plaza to one of Houston’s most desirable new addresses. Crescent Energy leased a 125,000 SF block at 609 Main Downtown, while the U.S. Attorney General took 99,000 SF at 700 Louisiana; Mayer Brown also renewed there for 60,000 SF. New leasing accounted for the majority of Q1 transactions, underscoring tenant willingness to pick up and move to premier locations. 

 

Landlord concessions remain elevated, with build-out allowances of $75–90/SF in older buildings and $110–120/SF for new or recently delivered properties. The CBD saw a significant headwind as NRG vacated nearly half a million square feet at 910 Louisiana (but partially offset by its 290,000 SF relocation to 3 Houston Center), resulting in the submarket posting the highest negative net absorption in the quarter.