Houston, TX Office Overview
The Houston office market encompasses the Greater Houston, South Houston, Southwest Houston and the Northwest Houston submarkets. With a metropolitan population of over 6.6 million people, the major industries of energy, aerospace and defense, and bio-science continue to boost a strong economy and increasing demand for space in the Houston TX commercial real estate market.
As of mid-2017, the Houston office market encompasses over 195 million square feet of existing office space, in properties larger than 50,000 square feet. The office scene in Houston continues to flourish, due to its broad industrial and business base.
Houston, TX Office Inventory Description
Houston is home to almost as many large public companies as is New York City, and the existing office inventory in Houston reflects that fact. Nearly 60% of Houston office space is Class a product, while Class B office properties make up nearly 39% of Houston TX's office inventory.
Downtown Houston commercial real estate boasts Houston’s densest office scene. Bordered by the I-45, I-10 and I-69 freeways this submarket is home to Class A office buildings such as the CenterPoint Energy Tower, the JPMorgan Chase Tower and Wells Fargo Plaza.
Other Houston office submarkets seeing high demand include the Medical Center market that runs along Main Street and is adjacent to the Texas Medical Center and the University of Texas Health Science Center, and the nearby University Place submarket.
Houston, TX Commercial Inventory Breakdown
Office Spaces
Total: 227,010,282 SF
By square footage range:
- 50k to 100k SF: 28,079,034 SF / 12.37% of total office
- 100k to 500k SF: 122,496,374 SF / 53.96% of total office
- 500k to 1M SF: 39,289,763 SF / 17.31% of total office
- > 1M SF: 37,145,111 SF / 16.36% of total office
By class:
- Class A+: 13,609,537 SF / 6% of total office
- Class A: 113,415,284 SF / 49.96% of total office
- Class B: 82,945,913 SF / 36.54% of total office
- Class C: 2,291,234 SF / 1.01% of total office
Houston, TX Green Office Space
Houston TX office buildings rank #4 for buildings larger than 50,000 square feet that are green, with over 28% of the office square footage in Houston being LEED-certified, and over 43% of the office space in Houston being Energy Star-compliant.
As an increasing number of Class A office tenants in Houston begin to place energy efficient space at the top of their list, both private and institutional investors will continue to pursue green certification for their assets, advancing the green office trend upward. With its healthy mix of both traditional energy, green energy, and high-technology industries, the Houston office market continues to offer tenants what they demand.
The 2017 National Green Building Adoption Index looked at commercial office properties in 30 major U.S. markets and found that, including EPA Energy Star-labeled buildings, the percentage of green certification has increased from under 5% in 2005 to 38% as of mid-2017. Houston placed fourth in this annual survey.
Houston, TX’s Top Office-Using Sectors
Houston is recognized around the world for its energy industry, but the demand for office space doesn't stop there. Oil, gas, renewable energy, biomedical research and aeronautics all contribute to the robust growth of the Houston office market and attract both national and global investors seeking stability and long-term performance.
A diverse mix of industry and business drives the Houston office market. Major industry sectors include real estate and corporate headquarters, finance, information technology, biomedical, and energy.
- Real Estate & Corporate Headquarters – Houston is home to 23 Fortune 500 companies, including Sysco, Baker Hughes and Halliburton.
- Finance – Banking, financial services and foreign government trade offices are major users of office space in Houston, including the Bank of American Center.
- Information Technology – The Houston Technology Center is the city's center for high-tech entrepreneurship, with more than 1,000 computer-related companies calling Houston home.
- Biomedical – The Texas Medical Center, the University of Texas Research Park, and the UT Health Science Center all play major roles in biotechnology and life sciences research.
- Energy – ConocoPhillips, Marathon Oil, KBR and National Oilwell Varco are a few of the top publicly traded energy companies headquartered in Houston.
Houston Demographics
Population
- Total Population2,267,336
- Male Population(50.1 %) 1,135,634
- Female Population(49.9 %) 1,131,702
- Median Age32.90
Income/Financial
- Average Household Income$79,344
- Median Household Income$49,399
- Median Income Under 25$29,186
- Median Income 25-44$50,613
- Median Income 45-64$56,009
- Median Income Over 65$40,215
- Addicks Park Ten Demographics
- Afton Oaks - River Oaks Demographics
- Alief Demographics
- Astrodome Demographics
- Briarforest Demographics
- Carverdale Demographics
- Clear Lake Demographics
- Downtown Houston Demographics
- Eldridge - West Oaks Demographics
- Energy Corridor Demographics
- Fairbanks - Northwest Crossing Demographics
- Fountain View Demographics
- Greater Greenspoint Demographics
- Greenway - Upper Kirby Demographics
- Iah - Airport Demographics
- Independence Heights Demographics
- Lazy Brook - Timbergrove Demographics
- Memorial Demographics
- North Houston Gardens Demographics
- Oak Hollow Demographics
- Pleasantville Demographics
- Sharpstown Demographics
- Spring Branch East Demographics
- Spring Branch West Demographics
- Uptown Houston Demographics
- Washington Ave - Memorial Park Demographics
- Westbranch Demographics
- Westchase Demographics
News
2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space
April 10, 2019
Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office sp...
The U.S. industrial real estate market had a solid year in 2018 and has continued to strengthen through the first quarter of 2019. Industrial rents are on an upward path, while the construction pipeline is robust and development is spurred on by the e-commerce sector. In terms of development, 20...
$24 billion worth of assets changed hands in the top 50 biggest office deals to close in 2018. Google, Disney, Samsung mingled with established top CRE players. Check out the full list and read up on last year’s most notable U.S. office investments.