Houston Office MarketBeat Q1 2026

Cushman & Wakefield's Houston Office Q1 2026 report analyzes the Houston metropolitan office market, which recorded 2.4 million square feet of leasing activity, 24.9% vacancy, and $31.77 per square foot average asking rent, with Class A space dominating demand while the market experienced negative net absorption of 817,000 square feet for the third consecutive quarter. Houston's employment reached 3.5 million with 0.6% year-over-year growth, outpacing the 0.2% national rate, though the construction pipeline remains constrained to two projects totaling 253,000 square feet, with limited new supply expected to help contain downward pricing pressure on lower-tier assets while well-leased Class A buildings benefit from tenant flight-to-quality demand.