Houston Office Rent Price & Sales Report

2020 Office Space Rent & Sales

  • 2.55% Y-o-Y Avg. Asking Rent Change
  • $1.1B2020 Total Office Sales
  • $329.27Avg. Sale Price/SF

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%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Houston market was 22.37% in 2020. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Houston was 9.59% in the Medical Center submarket, while the highest office vacancy in the market was 48.16%, recorded in Greenspoint.

Office Spaces for Rent in Texas

Houston Office Sale Price per SF

  • $329.272020 Avg. Price per SF
  • $1.1B2020 Office Sales Volume
  • 192020 Number of Transactions

Houston, TX Sale Price per SF Trend

  • Houston Avg. Sale Price per SF in 2020$329.27
  • Texas Avg. Sale Price per SF in 2020$216.82
The sale price for office space in Houston averaged $329.27 per square foot in 2020, across all market subdivisions and asset classes. Conversely, the statewide Texas average office sale price during the same time period was $216.82 per square foot.

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
A total of 19 deals closed on the Houston office market in 2020, adding up to a yearly sales volume of $1.1B. Notably, the largest transaction on the market saw 609 Main at Texas change hands for $675,000,000 on 3/18/2020.

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
Data provided by Commercial Edge

Coworking Spaces in Texas

2020 Office Construction in Houston, TX

  • Houston, TX Total SF completed in 2020 684,182
  • Houston, TX Total SF 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.

Largest Office Properties Recently Completed in Houston
Office building Address SF Completed
POST Houston 401 Franklin Street, 77201 550,000 2022
Museo - 5115 Fannin 5115 Fannin Street, 77004 153,775 2022
Two Fannin 7500 Fannin Street, 77054 119,113 2022
Texas Tower 845 Texas Avenue, 77002 1,101,856 2021
Post Oak Place 1801 Post Oak Blvd, 77027 105,000 2021
M-K-T Buildings II & V 600 North Shepherd Drive, 77077 72,595 2020
River Oak Surgical Center 3720 Westheimer Road, 77027 59,744 2020
One Emancipation Center 3131 Emancipation Avenue, 77004 55,814 2020
3201 Allen 3201 Allen Pkwy, 77019 42,000 2020
The Offices at North Post Oak 1242 North Post Oak, 77055 3,300 2020

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.

Data provided by Commercial Edge

See reports for other 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.