Houston Office Market on Upward Trend
The Houston office market demonstrated notable upward momentum in the third quarter of 2025, according to a recent report from Partners Real Estate. Net absorption surged to 653,651 square feet, a significant increase from 415,059 square feet in the previous quarter. This growth was accompanied by a slight decrease in the overall vacancy rate, which edged down to 26.3%, reflecting a 20-basis-point improvement from Q2 2025.
Leasing activity remained strong, totaling 2.7 million square feet. Positive absorption was recorded across six submarkets, supported by demand for both Class A and Class B office properties.
Construction activity also gained pace, with deliveries increasing by 158% from the prior quarter, adding 319,117 square feet of new office space to the market. The construction pipeline held steady at approximately 1.3 million square feet.
Rental rates across the Houston office market experienced an overall quarterly increase of 5.8%, reaching an average of $30.58 per square foot. Class A space saw a notable rise in average rent to $35.85 per square foot, while Class B space averaged $23.18 per square foot.
These key indicators suggest a steady and positive trend for the Houston office sector heading into the final quarter of 2025.
