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Houston Office Market Trends

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)
In 2019, the average asking rent for office space in Houston was $29.59 per square foot, and the office vacancy rate across the market averaged 18.36 %. During 2019, developers added 1,179,000 square feet of new office space to the Houston market inventory. Office developments estimated for delivery during 2020 total 4,462,459 square feet.

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 %
Data provided by Commercial Edge
  • 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
10 Largest Office Buildings in Houston
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
Largest Office Properties Recently Completed in Houston
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
Data provided by Commercial Edge

Office Spaces for Rent in Texas

  • Uptown Houston Office Space
  • Downtown Houston Office Space
  • Greater Greenspoint Office Space
  • Energy Corridor Office Space
  • Greenway - Upper Kirby Office Space
  • Westchase Office Space
  • Addicks Park Ten Office Space
  • Washington Ave - Memorial Park Office Space
  • Fairbanks - Northwest Crossing Office Space
  • Clear Lake Office Space
  • Memorial Office Space

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
Data provided by Commercial Edge

See trends for nearby markets

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  • Sugar Land Market Trends
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  • Kingwood Market Trends
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  • Pearland Market Trends
  • Webster Market Trends

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.

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