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Houston Bucks Soft Office Occupancy Trend
After four consecutive years of annual occupancy losses, the Houston office market saw positive net absorption in the first half of 2023. An Avison Young second quarter report showed the city recorded 281,000 square feet of positive net absorption, led by the CBD submarket with 224,000 square feet absorbed, followed by the Energy Corridor and The Woodlands with 218,000 sf and 209,000 square feet, respectively.
“We are finally seeing that slow upward trend for the office sector,” said Avison’s Wade Bowlin. “The flight-to-quality trend has helped us experience expansion in the market, particularly on the West Side.”
Office leasing activity continues to gain traction with nearly 2.7 million square feet leased in the second quarter of 2023. The surge in corporate relocations to the West Side of town is driving this trend, as companies snap up large blocks of office space to be closer to their workforce.
The total vacancy for the Houston office market sits at 26%.
- ◦Economy
