Figures
Houston Office Figures - Q1 2025
April 2, 2025 5 Minute Read
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- Demand for new Trophy assets continues unabated as Hines’ Texas Tower leased its last full floors in the first quarter. Other new deliveries have seen similar activity, and availability among this building set is now in the single digits.
- Thanks to white-hot demand for new construction and waning availabilities, rent spreads have startled the market: contract rents in Trophy assets are now nearly double the typical Class A rent seen throughout Houston.
- Outside of the most sought-after new Class A product and a few large renewals, leasing activity took a hit in the first quarter, due in part to economic uncertainty and a lengthening deal cycle. Despite the slowness - and boding well for a turnaround in the market – a growing number of tenants opted to expand their footprint and are increasingly exercising expansion options.
- Class A space saw positive occupancy growth in Q1, with 31k SF of new move-ins. This was balanced by 150k SF of move-outs in the Class B market, resulting in a negative quarter overall. Vacancy now stands at 24.2% across all classes.