: The market is highly bifurcated. High-end, amenitized buildings (Trophy and Class A+) are seeing rising rents and tightening concessions, while older, non-competitive buildings account for nearly 44% of all vacant space.
As of early 2026, the Houston commercial real estate (CRE) market is characterized by a significant in the office sector and robust growth in the industrial and retail sectors . While overall office vacancy remains high at approximately 27%, demand for premium Class A+ assets has pushed vacancy in that tier to its lowest level in over a decade. 1. Sector Performance Outlook
: A "V-shaped" recovery is underway in 2026, with over 24.3 million square feet under construction—the largest pipeline since 2023. Rents are at record highs, averaging $10.67/sq ft NNN , though vacancy has climbed to 7.4%–7.8% as new supply outpaces move-ins.
: Retail remains balanced with a low vacancy rate of 5.6% . Demand is strongest for shopping centers anchored by grocery or experiential tenants in high-growth suburban areas. 2. Top Neighborhoods for Investment Houston Office Market Reports | Avison Young US