Latest Quarterly Snapshot

In 3Q24, the Houston office market exhibited several promising trends, including improved net absorption, stable rental rates at $29.88pSF, and a slight decrease in the overall vacancy rate which stands at 18.9%. Urban offices drove the demand in Houston as companies are wanting to be closer to their employees. Furthermore, in 3Q24, the Central Business District (CBD) led leasing activity, accounting for 32% of the total deal volume.

In 2023, the Houston regional land market was marked by a steep decline in sales activity and a slowdown in price growth, but market conditions in 2024 have improved some. In 2Q24, the situation became more complex, with price trends showing mixed results and the rate of decline in total sales volumes starting to level off again. Moreover, the housing inventory now stands at 4.3 months of availability, reflecting a recovery from the critically low levels experienced in recent quarters. Houston's inventory is improving and will lead to more balanced market conditions.

The Houston retail market continues to be durable with vacancy and availability rates remaining below the 5-year average. Therefore, demand has outpaced supply over the past five quarters. Demand surged to 787,531 SF, marking a 20.9% increase compared to the previous year. Net absorption, at 582,772 SF, outpaced the introduction of new supply, highlighting a market where occupancy is growing faster than new space is being made available. Overall, the retail market remains strong with high demand, which should continue for the next few quarters.