The Partner’s Houston office market report showed significant upward momentum. Q3 2025 showed some positive gains, with net absorption increasing significantly to 653,651 square feet from 415,059 square feet in the previous quarter. Vacancy rates edged down to 26.3%, reflecting a 20-basis-point decrease from Q2 2025.
Leasing activity remained steady at 2.7 million square feet. Six submarkets contributed to positive absorption figures, with contributions from both Class A and Class B properties. Construction deliveries increased 158%, adding 319,117 square feet to office inventory. The construction pipeline remained relatively unchanged at 1.3 million sq. ft. Rental rates increased quarterly by 5.8% to $30.58 per square foot. Class A property’s rental rate rose significantly to $35.85 per square foot and the overall Class B average rental rate is $23.18 per square foot.
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