Growth in demand for office space is optimistic for 2025 despite slow start to the year

Leasing activity observed a slight slowdown in Q1 2025, compared to the prior quarter with the Houston office market seeing 1.7 million square feet (msf) leased. Despite the slow start, the 2025 demand outlook for Houston remains optimistic as office-using employment growth remains positive and office attendance has been increasing. Positive leasing activity among the legal sector continues, with the CBD submarket being a top location for law firms. The CBD submarket saw two significant law firms deals in Q1 2025 as Skadden leased and expanded to 52,000 square feet (sf) at Texas Tower and Simpson Thatcher leased and expanded to 22,000 sf at JPMorgan Chase Tower. Trophy Class A buildings continue to lead in demand as occupiers have favored premium buildings in the best locations.

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