Office Rental Market
- $29.59 2019 Avg. Asking Rent
- 18.36 % 2019 Avg. Vacancy Rate
- 1,179,000 2019 Office Completions (Sqft)
- 4,462,459 2020 Estimated Pipeline (Sqft)
Average Office Asking Rents by Class
2019 Average Office Rent per Square Foot
- Houston Class A Office Buildings$34.82
- Houston Class B Office Buildings$21.66
- Houston Class C Office Buildings$14.73
- TX Class A Office Buildings$34.48
- TX Class B Office Buildings$23.32
- TX Class C Office Buildings$16.03
Houston, TX Office Asking Rents by Class
Office asking rents vary across the Houston office market depending on several factors, one of which is property class. While rents for Class A office buildings in Houston averaged $34.82 per square foot in 2019, Class B office properties garnered average rental rates of $21.66 per square foot. Rental rates for Class C office property in Houston averaged $14.73 per square foot. On a statewide level, Class B office space rents averaged $23.32 per square foot, while rents for Class A office space across Texas averaged $34.48 per square foot. On average, Class C office properties in Texas commanded rents of $16.03 per square foot.
2019 OFFICE VACANCY RATES
| Submarket | Asking Rents | Vacancy Rates |
|---|---|---|
| Central Business District | $39.34 | 17.16 % |
| Briar Hollow | $36.94 | 19.03 % |
| Galleria | $36.28 | 12.13 % |
| Memorial Villages | $35.44 | 5.29 % |
| Neartown | $34.25 | 11.57 % |
| West Houston | $33.56 | 11.47 % |
| Tanglewood | $30.52 | 15.06 % |
| Midtown | $30.15 | 11.32 % |
| Medical Center | $29.51 | 5.63 % |
| Greenway - Upper Kirby | $28.07 | 6.77 % |
| Energy Corridor | $27.61 | 18.35 % |
| Briargrove | $26.53 | 6.96 % |
| Cypress West | $25.54 | 16.40 % |
| Westchase | $24.41 | 17.55 % |
| Beltway 8 | $23.93 | 15.15 % |
| North Loop | $23.71 | 15.54 % |
| Clear Lake | $20.67 | 18.64 % |
| Greenspoint | $20.13 | 35.56 % |
| South Houston | $19.15 | 6.22 % |
| Fairbanks | $17.79 | 15.32 % |
| East Houston | $17.61 | 10.00 % |
| Westwood | $17.60 | 13.37 % |
| Cypress East | $17.25 | 21.31 % |
| Sharpstown | $14.80 | 15.76 % |
- The lowest office vacancy rate in 2019 in Houston was 5.29 % in the Memorial Villages submarket, where asking rents averaged $35.44.
- The highest office vacancy rate in 2019 in Houston was 35.56 % in the Greenspoint submarket, where asking rents averaged $20.13.
OFFICE CONSTRUCTION IN Houston, TX
- Houston, TX Total Sqft completed in 2019 1,179,000
- Houston, TX Total Sqft under construction in 2020 4,462,459
| Building name | Address | Total Sqft | Year built |
|---|---|---|---|
| Hewlett Packard Enterprise Campus | 11445 Compaq Center West Drive, 77070 | 2,000,000 | 1984 |
| Wells Fargo Plaza | 1000 Louisiana Street, 77002 | 1,721,242 | 1983 |
| JPMorgan Chase Tower | 600 Travis Street, 77002 | 1,683,893 | 1981 |
| 600 Travis | 600 Travis Street, 77002 | 1,656,529 | 1981 |
| Williams Tower | 2800 Post Oak Blvd, 77056 | 1,482,384 | 1983 |
| Pennzoil Place | 711 Louisiana Street, 77002 | 1,409,713 | 1975 |
| 1001 Fannin | 1001 Fannin Street, 77002 | 1,385,212 | 1981 |
| 800 Bell | 800 Bell Street, 77002 | 1,383,910 | 1962 |
| Mid Campus Building 1 | 7007 Bertner Avenue, 77030 | 1,368,600 | 2010 |
| 1001 Fannin | 1001 Fannin Street, 77002 | 1,333,212 | 1980 |
| 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 Freeway | 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 |
| Houston Methodist Clear Lake Hospital Orthopedic MOB | 18123 Upper Bay Road, 77058 | 158,000 | 2021 |
| Museo Plaza Medical Office Building | 5115 Fannin Street, 77004 | 154,056 | 2021 |
| 7500 Fannin Street | 7500 Fannin Street, 77054 | 122,054 | 2021 |
| Village Towers - Building 2 | 9655 Katy Fwy, 77024 | 120,000 | 2021 |
Office Spaces for Rent in Texas
HOUSTON OFFICE SALES TRENDS
- $183.672019 Avg. Price per Sqft
- -22.64 %Y-o-Y Avg. PpSF Change
- $2.1B2019 Office Sales Volume
- 432019 Number of Transactions
In 2019, office sales in Houston averaged $183.67 per square foot. This marked a -22.64 % decrease in office price per square foot, compared to the previous year. A total of 43 office sales closed on the Houston office market in 2019, amounting to a total sales volume of $2.1B.
Average Office Sale Price per Sqft
Houston, TX Sales Trends
- Houston Price per Sqft$183.67
- Texas Price per Sqft$253.24
Office Sales - Trend and Volume
- Houston, TX Total Office Sales Volume in 2019 $2.1B
- Houston, TX Total Number of Office Sales Closed in 2019 43
Largest Houston Office Sales in 2019
| Property name | Address | Date | Price |
|---|---|---|---|
| JPMorgan Chase Tower | 600 Travis Street | 10/28/2019 | $555,969,000 |
| Bank of America Tower | 800 Capitol Street | 12/18/2019 | $414,500,000 |
| Koch Building | 20 Greenway Plaza | 5/17/2019 | $83,214,000 |
| Energy Tower I | 11700 Katy Fwy | 6/28/2019 | $81,321,000 |
| JPMorgan Chase Center | 601 Travis Street | 10/28/2019 | $71,031,000 |
See trends for nearby markets
The Houston office market contains an inventory of 219,699,700 square feet of office space, in 1,616 buildings that are equal to or larger than 25,000 square feet.
This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive 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.