Flight-to-quality drives leasing momentum as Class A demand holds firm

Leasing momentum from the first half of 2025 continued into the third quarter, with the Houston office market recording 2.9 million square feet (msf) of leases in Q3 2025, a 26.0% increase year over year. Class A buildings drove activity, accounting for 70.0% of leasing volume. Top-tier buildings maintained high occupancies and outperformed the broader market, underscoring occupiers’ preference for high-quality, amenity-rich space. The market also saw several large relocations and renewals, including Geico’s renewal for approximately 136,000 square feet (sf) and Tetra Technologies’ lease of approximately 62,000 sf at City Place. Together, these moves reinforced Houston’s appeal for tenants seeking stability and scale.

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