Houston Office Market
Average annual full-service asking rental rates increased to an all-time high of $30.42/SF, a 1.3% increase year over year. Overall vacancy rates fell from the previous quarter’s historical high, decreasing by 30 basis points quarter over quarter and increasing by 30 basis points year over year. The under-construction pipeline remains stable, with 1.5 MSF in progress. Net absorption totaled 1.5 MSF for the fourth quarter of 2023 and annual net absorption turned positive for the first time since 2019 at 755,739 SF for 2023.
Download Houston Office Market Report 4Q23Houston Industrial Market
The market realized 2.3 MSF of positive absorption in the fourth quarter of 2023, bringing annual totals to 18.4 MSF. Overall rental rates grew 9.0% year over year to $9.39/SF, reaching a new historical high. The construction pipeline remains above pre-pandemic levels with 5.0 MSF of deliveries, with another 21.5 MSF under construction. Following yearly supply outpacing demand for the first time since 2020, vacancy increased in the fourth quarter of 2023 by 180 basis points year over year to 7.0%.
Download Houston Industrial Market Report 4Q23