Houston office leasing activity remains steady as flight to quality continues

The Houston office market continues to remain resilient, observing approximately 2.3 million square feet (msf) of leasing in Q3 2024. Leasing for the year has remained consistent, tracking near the five-year average. Notable deals for Q3 2024 included Texas Tower leasing approximately 107,000 square feet (sf) through two major transactions: Fayez Sarofim leasing 60,764 sf and Sable Offshore leasing 46,149 sf, respectively. Additionally, Mitsubishi secured approximately 50,990 sf at 3009 Post Oak Blvd and Paul Hastings leased 42,289 sf at 609 Main at Texas. The majority of top transactions occurred in Class A buildings, highlighting the ongoing demand for high-quality office spaces, consistent with the trend of "flight to quality." Looking ahead, demand for Class A space is expected to remain firm, as occupiers continue to favor premium buildings.

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