Houston Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $31.12 2023 Avg. Asking Rent
  • 0.39% Y-o-Y Avg. Asking Rent Change
  • 26.52% 2023 Office Vacancy Rate
  • $410.9M2023 Total Office Sales
  • $114.55Avg. Sale Price/SF

Houston office price per square foot in 2023 was $31.12 on average. This marked a +0.39% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 26.52% across all asset classes combined. The 23 transactions that closed here throughout 2023 amounted to a total sale volume of $410.9M. Houston office space commanded an average sale price per square foot of $114.55.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Houston Class A & A+ Office Space$36.01
  • Houston Class B Office Space$22.40
  • Houston Class C Office Space$17.57
  • Texas Class A & A+ Office Space$36.17
  • Texas Class B Office Space$24.95
  • Texas Class C Office Space$31.07

Houston, TX Office Asking Rents by Class

Average office rent in Houston rested at $31.12 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Houston averaged $36.01 per square foot. Across all submarkets, class B office space recorded an average asking rent of $22.40 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $17.57 per square foot, on average. Comparably, statewide Texas average office rents by class in 2023 were: $36.17 per square foot for class A office space; $24.95 per square foot for class B office space; $31.07 per square foot for class C office space.

2023 Office Vacancy Rates in Houston

Submarket Asking Rents Vacancy Rates
Central Business District $40.01 38.22%
Briar Hollow $37.44 16.60%
Midtown $36.43 11.94%
Galleria $34.65 24.26%
Medical Center $34.01 20.26%
Neartown $34.01 16.03%
Memorial Villages $31.19 8.46%
Greenway - Upper Kirby $31.09 23.03%
Beltway 8 $31.08 37.72%
Bellaire $30.24 19.87%
South Houston $29.98 17.54%
Briargrove $29.15 17.52%
West Houston $28.38 13.23%
Tanglewood $28.22 12.17%
Energy Corridor $26.74 23.41%
Clear Lake $26.02 12.49%
Westchase $25.74 31.59%
North Loop $24.84 8.64%
Cypress West $24.33 29.14%
East Houston $23.98 11.02%
Kingwood $23.76 21.16%
Westwood $23.45 24.43%
Fairbanks $19.82 14.74%
Sharpstown $18.96 29.19%
Greenspoint $15.94 35.62%
Cypress East $15.16 31.46%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Houston market was 26.52% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Houston was 8.46% in the Memorial Villages submarket, while the highest office vacancy in the market was 38.22%, recorded in Central Business District.

Office Spaces for Rent in Texas

Houston Office Sale Price per SF

  • $114.552023 Avg. Price per SF
  • 12.95%Y-o-Y Avg. PpSF Change
  • $410.9M2023 Office Sales Volume
  • 232023 Number of Transactions

Houston, TX Sale Price per SF Trend

  • Houston Avg. Sale Price per SF in 2023$114.55
  • Texas Avg. Sale Price per SF in 2023$166.66
Houston office space cost in 2023 marked a +12.95% change compared to the previous year. The sale price for office space in Houston averaged $114.55 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Texas average office sale price during the same time period was $166.66 per square foot.

2023 Office Sales Volume

  • Houston, TX Total Office Sales Volume in 2023 $410.9M
  • Houston, TX Total Number of Office Sales Closed in 2023 23
A total of 23 deals closed on the Houston office market in 2023, adding up to a yearly sales volume of $410.9M. Notably, the largest transaction on the market saw San Felipe Plaza change hands for $82,800,000 on 2/22/2023.

Largest Houston Office Sales in 2023

Property name Address Date Price
San Felipe Plaza 5847 San Felipe Street 2/22/2023 $82,800,000
Lamar Plaza 1010 Lamar Street 10/31/2023 $26,000,000
Ashford East 1160 North Dairy Ashford Road 12/22/2023 $15,430,270
13401 North Fwy 13401 North Fwy 4/5/2023 $5,000,000
2302 Fannin Street 2302 Fannin Street 8/1/2023 $3,258,500
Data provided by Commercial Edge

Coworking Spaces in Texas

2023 Office Construction in Houston, TX

  • Houston, TX Total SF completed in 2023 1,796,220
  • Houston, TX Total SF under construction in 2024 1,739,077

During 2023, 1,796,220 square feet of new office space were delivered across the market. At the close of 2023, the Houston office inventory included 11 buildings equal to or larger than 25,000 square feet, which comprised 1,796,220 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 1,739,077 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Houston
Office building Address SF Completed
1550 on the Green 1550 Lamar Street, 77010 382,000 2024
Block 10 West Medical 10498 Old Katy Road, 77043 175,000 2024
9753 Katy Freeway 9753 Katy Fwy, 77024 188,550 2023
The Studios at East River 2850 Clinton Drive, 77020 10,000 2023
16310 State Highway 249 16310 Tomball Pkwy, 77064 5,750 2023
6713 FM 521 Rd 6713 FM 521 Rd, 77030 3,250 2023
Montrose Collective 888 Westheimer Road, 77006 169,514 2022
888 Westheimer Road 888 Westheimer Road, 77006 169,514 2022
Museo - 5115 Fannin 5115 Fannin Street, 77004 153,775 2022
3120 Southwest Fwy 3120 Southwest Fwy, 77098 151,752 2022

Worth noting among recent office completions on the Houston market is 1550 on the Green, which is currently the largest new office development in the city, at 382,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Houston commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.