2020 Office Space Rent & Sales
- $30.34 2020 Avg. Asking Rent
- 2.55 % Y-o-Y Avg. Asking Rent Change
- 22.37 % 2020 Office Vacancy Rate
- $1.1B2020 Total Office Sales
- $329.27Avg. Sale Price/Sqft
Houston office price per square foot in 2020 was $30.34 on average. This marked a +2.55 % change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 22.37 % across all asset classes combined. The 19 transactions that closed here throughout 2020 amounted to a total sale volume of $1.1B. Houston office space commanded an average sale price per square foot of $329.27.
Average Rent by Office Class
2020 Average Office Rent per Square Foot
- Houston Class A Office Space$35.48
- Houston Class B Office Space$21.00
- Houston Class C Office Space$14.20
- Texas Class A Office Space$35.41
- Texas Class B Office Space$23.36
- Texas Class C Office Space$16.89
Houston, TX Office Asking Rents by Class
Average office rent in Houston rested at $30.34 per square foot in 2020. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Houston averaged $35.48 per square foot. Across all submarkets, class B office space recorded an average asking rent of $21.00 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $14.20 per square foot, on average. Comparably, statewide Texas average office rents by class in 2020 were: $35.41 per square foot for class A office space; $23.36 per square foot for class B office space; $16.89 per square foot for class C office space.
2020 Office Vacancy Rates in Houston
| Submarket | Asking Rents | Vacancy Rates |
|---|---|---|
| Central Business District | $40.12 | 24.85 % |
| Briar Hollow | $38.26 | 31.60 % |
| Midtown | $35.92 | 12.69 % |
| Galleria | $35.01 | 16.44 % |
| Memorial Villages | $34.55 | 10.78 % |
| Neartown | $34.31 | 14.97 % |
| West Houston | $32.20 | 23.94 % |
| Greenway - Upper Kirby | $29.99 | 10.88 % |
| Tanglewood | $29.75 | 19.62 % |
| Briargrove | $28.25 | 13.14 % |
| Medical Center | $28.13 | 9.59 % |
| Beltway 8 | $27.54 | 20.91 % |
| Energy Corridor | $27.27 | 24.29 % |
| Cypress West | $26.28 | 23.08 % |
| Westchase | $23.77 | 23.63 % |
| North Loop | $23.05 | 18.10 % |
| Clear Lake | $22.22 | 22.87 % |
| Greenspoint | $19.37 | 48.16 % |
| South Houston | $18.89 | 14.89 % |
| Westwood | $18.08 | 26.99 % |
| Fairbanks | $17.87 | 27.41 % |
| East Houston | $17.45 | 17.36 % |
| Sharpstown | $16.73 | 32.60 % |
| Cypress East | $16.64 | 24.74 % |
Office Spaces for Rent in Texas
Houston Office Sale Price per Sqft
- $329.272020 Avg. Price per Sqft
- $1.1B2020 Office Sales Volume
- 192020 Number of Transactions
Houston, TX Sale Price per Sqft Trend
- Houston Avg. Sale Price per Sqft in 2020$329.27
- Texas Avg. Sale Price per Sqft in 2020$216.82
2020 Office Sales Volume
- Houston, TX Total Office Sales Volume in 2020 $1.1B
- Houston, TX Total Number of Office Sales Closed in 2020 19
Largest Houston Office Sales in 2020
| Property name | Address | Date | Price |
|---|---|---|---|
| 609 Main at Texas | 609 Main Street | 3/18/2020 | $675,000,000 |
| Kirby Grove | 2925 Richmond Avenue | 2/19/2020 | $115,000,000 |
| 2900 Weslayan | 2900 Weslayan Street | 1/30/2020 | $27,643,000 |
| Two Chasewood | 20405 State Highway 249 | 8/31/2020 | $21,702,080 |
| 7660 Woodway Drive | 7660 Woodway Drive | 3/13/2020 | $19,739,000 |
2020 Office Construction in Houston, TX
- Houston, TX Total Sqft completed in 2020 684,182
- Houston, TX Total Sqft under construction in 2021 3,246,649
During 2020, 684,182 square feet of new office space were delivered across the market. At the close of 2020, the Houston office inventory included 11 buildings equal to or larger than 25,000 square feet, which comprised 684,182 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 3,246,649 square feet of office space to the market, before year-end.
| Office building | Address | Sqft | Completed |
|---|---|---|---|
| POST Houston | 401 Franklin Street, 77201 | 550,000 | 2021 |
| Marathon Oil Headquarters | 990 Town and Country Blvd, 77024 | 445,000 | 2021 |
| The Ion | 4201 Main Street, 77002 | 288,000 | 2021 |
| 8020 Katy Fwy | 8020 Katy Fwy, 77055 | 205,500 | 2021 |
| 9753 Katy Freeway | 9753 Katy Fwy, 77024 | 190,000 | 2021 |
| Montrose Collective | 888 Westheimer Road, 77006 | 169,514 | 2021 |
| 18123 Upper Bay Road | 18123 Upper Bay Road, 77058 | 158,000 | 2021 |
| Museo Plaza Medical Office Building | 5115 Fannin Street, 77004 | 153,775 | 2021 |
| Two Fannin | 7500 Fannin Street, 77054 | 122,054 | 2021 |
| Village Towers - Building 2 | 9655 Katy Fwy, 77024 | 120,000 | 2021 |
Worth noting among recent office completions on the Houston market is POST Houston, which is currently the largest new office development in the city, at 550,000 square feet.
See reports for nearby markets
This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2020 through December 31st 2020. Construction pipeline data represented herein is valid as of April 2021. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Houston commercial properties sized 25,000 square feet or larger.
While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.