Leasing activity remains resilient as flight to quality prevails

The Houston office market continues to show signs of stabilization, with leasing activity trending near the five-year average. For Q2 2025, leasing reached 2.5 million square feet (msf), in-line with the prior year over year figure. Occupiers' preference towards higher quality buildings is prevalent, with Class A buildings accounting for approximately 75% of leased space. Premium quality buildings like Texas Tower and 609 Main at Texas boast high occupancies, in addition Autry Park; which is currently under construction, pre-leased over 68,000 square feet (sf) in Q2 2025 further supporting the flight to quality trend. Looking ahead, the near-term demand outlook is optimistic with Class A buildings within desirable submarkets continuing to lead tenant preference.

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