Houston’s office market is increasingly defined by a sharp divide between high‑performing assets and obsolete inventory, that’s according to an Avison Young First Quarter 2026 Office Market Report for Houston. 

While the overall vacancy rate remains elevated at 27%, 44% of all vacant space is concentrated within just 16.4% of the market’s inventory. These distressed assets—primarily older, under-amenitized buildings—face mounting headwinds. In contrast, trophy and Class A+ properties recorded approximately 350,000 sf of positive net absorption, pushing direct vacancy in this segment down to 11.9%, its lowest level since 2015. Full‑service gross asking rents for top‑tier buildings surpassed $50 per sf for the first time, with trophy assets reaching $57.71 per sf, up 5.9% year‑over‑year.

Tenant requirements are showing signs of improvement, with demand continuing to concentrate in high‑quality buildings. Class A tier 2 assets captured 57% of year‑to‑date leasing activity, the highest share since 2019.