Houston’s office market experienced a positive net absorption in the first half of 2023, after four consecutive years of annual occupancy losses. An Avison Young second quarter report revealed that 281,000 square feet were absorbed across the city, with CBD submarket leading at 224,000 square feet followed by Energy Corridor and The Woodlands with 218,000 sf and 209,000 square feet respectively.
Wade Bowlin from Avison commented on this slow upward trend for Houston’s office sector saying: “The flight-to-quality trend has helped us experience expansion in the market particularly on its West Side”. This is further supported by leasing activity which saw nearly 2.7 million square feet leased during Q2 2023 due to corporate relocations to West side of town looking for large blocks of office space close to their workforce.
As per current statistics total vacancy rate sits at 26%.
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