Quarterly Snapshot 1Q26 | Office | Houston's Office Market Is Showing Early Signs of Recovery
Houston's office market is beginning to stabilize after several difficult years, with positive net absorption reaching a 10-year high and vacancy declining from its 2025 peak. The market-wide vacancy rate now sits at 19.9%, but newer office buildings are performing significantly better, highlighting a strong "flight to quality" trend. Demand is concentrated in high-end, amenitized buildings located in strong submarkets such as Katy Freeway East, The Woodlands, and parts of the CBD. While recovery is uneven and older commodity office buildings still struggle with elevated vacancy, the market appears to have reached an inflection point as previously vacant space begins to backfill and supply pressures remain limited