Houston leasing remains resilient as leasing continues to trail near five-year average

Leasing activity continues to hold firm with the Houston office market observing 2.6 million square feet (msf) of leasing in Q4 2024. Leasing for 2024 has remained consistent, tracking near the five-year average. West Houston continues to outperform, attributing to approximately 30% of the total square feet leased. Notable deals for Q4 2024 include Freeport LNG securing 65,734 square feet (sf) at Allen Center, DNV Group leasing 56,433 sf at 19219 Katy Freeway and McDermott leasing 50,489 sf at 17320 Katy Freeway. Office demand has been broadbased with new leasing activity in several sectors including energy & utilities, legal services, and architecture, engineering and construction. In addition, demand for high-quality office spaces continues as Class A building accounted for majority of the leasing in Q4 2024. Looking ahead, demand for Class A space is expected to remain dominant as the trend of "flight to quality" will likely persist as occupiers continue to favor premium buildings.

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