Houston office market absorption declines in 1Q2025 

HOUSTON – Local office market absorption declined in first quarter 2025, with only 7,960 sf absorbed, a sharp drop from the previous quarter.  

Vacancy rates rose to 26.5 percent, driven by increased vacancies in Class A properties, which reached 28.8 percent.  

Leasing activity fell 28 percent to 2.1 million sf. 

Construction deliveries were low at 73,000 sf, and the construction pipeline continued its decline to 1.1 million sf, down 63 percent from the previous year.  

Rental rates dropped slightly, with Class A at $32.83 per sf and Class B at $22.70 per sf.