Demand for Houston Class A office property healthy in 4Q2025, report shows

HOUSTON – The city’s office market remained healthy in 4Q2025 with increased rental rates and lower vacancy despite a drop in absorption and leasing activity, according to the latest quarterly market report from Partners Real Estate.

Net absorption decreased to 375,171 sf from 536,727 sf recorded in the previous quarter.

Vacancy rates edged down to 26.3 percent, reflecting a 10-basis-point decrease from 3Q2025.

Leasing activity declined 22.2 percent to 2.1 million sf.

Twelve submarkets posted positive absorption, with Class A properties accounting for the majority.

Construction deliveries decreased 33.9 percent, adding 210,879 sf to office inventory. The construction pipeline dropped 11.5 percent to one million sf.

Rental rates increased quarterly by 0.2 percent to $30.63 per sf. Class A property rental rates rose slightly to $35.81 per sf, and the overall Class B average rental rate is $23.22 per sf.