Q3 2025 | Houston Office Market Report

HOUSTON - Rezul -- "Houston's office market is showing renewed strength with consecutive quarters of positive absorption and declining vacancy."

Danny Rice | President

Market Trends

• Houston's office market shows encouraging momentum with positive net absorption for the second consecutive quarter, netting 992,959 SF year to date, reversing the negative trend since 2019.
• The overall vacancy rate improved to 27.4% after reporting record-highs earlier in the year.
• Class B properties outperformed Class A in absorption during the third quarter due to a few larger move ins, representing a diversification beyond the traditional flight-to-quality trend.
• Construction activity remains limited, with two of the three buildings currently underway already 100% preleased before completion next year.
• Leasing volume has slowed to 2.1M SF, a 25.6% drop from last quarter and a 42.0% drop year over year.
• Overall gross asking rents increased 6.1% from last quarter to $30.74 PSF, representing a marginal year-over-year increase.

Read the full report at colliers.com/houstonresearch

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