Downtown Houston Office Story - 2025 Market Analysis

Downtown Office Story

2025 MARKET ANALYSIS

Executive Summary

Downtown Houston’s office market showed continued signs of stabilization

The occupier base remained relatively stable, with energy tenants continuing

in 2025, with improving leasing activity, tightening marketed space, and a

to account for the largest share of occupied space. However, Downtown’s

gradual shift toward a more balanced occupier base. While the market remains

industry mix continues to diversify, with legal and FIRE tenants increasing

below pre-pandemic leasing norms, the data points to a clearer recovery

their share of total occupancy. Legal and FIRE tenants remain especially

pattern as tenants continue to make long-term real estate decisions and

concentrated in Tier I buildings, while energy tenants occupy a wider range

underperforming office assets are increasingly removed from the competitive

of building types and price points. This diversification is a positive long-term

market.

signal for Downtown Houston, as a broader tenant base can help reduce the

Total marketed space declined in 2025, driven by a combination of lease-up activity, reduced sublease availability, and the removal of obsolete or no longer

Overall, the 2025 Office Story reflects a market moving toward a new

competitive office space from the surveyed inventory. Direct marketed space

equilibrium. Downtown Houston continues to face challenges, particularly

decreased across Tiers I and III, while Tier II remained essentially flat. At the

around elevated availability, uneven demand across building tiers, and leasing

same time, marketed sublease space fell year-over-year to one of its lower

activity that has not yet returned to historical norms. At the same time, the

levels in recent years, suggesting that market conditions are improving even

market is showing measurable improvement: marketed space is tightening,

as overall availability remains elevated by historical standards. Tier II buildings

sublease pressure is easing, new leasing is increasing, and large and mid-sized

continue to hold the largest share of direct marketed space, highlighting an

occupiers are beginning to show signs of recovery. These trends suggest that

ongoing challenge for lower Class A assets that must compete against both

Downtown’s office market is not fully recovered, but it is becoming healthier,

highly amenitized Tier I properties and more cost-effective Tier III alternatives.

more clearly defined, and better positioned for long-term stability.

Leasing activity also improved for the second consecutive year, totaling more than 2.4 million square feet in 2025, a 8.5% increase from 2024 and a 17.2% increase from 2023. New leasing activity rose 18% year-over-year, while renewal activity remained a major driver of total transaction volume.

This suggests that more tenants are recommitting to Downtown and, in many cases, are no longer reducing their footprints as aggressively as they did during the earlier post-pandemic period. However, overall leasing volume remains well below long-term historical averages, underscoring that the recovery is still ongoing.

2

market’s exposure to industry-specific disruptions.

20

Occupier Analysis

32

Appendix

40

T a b le

Leasing Analysis

STO RY

10

O F F I C E

Marketed Space

H O U STO N

4

DOWN TOW N

Inventory Analysis

2 025

Table of Contents

of C ontents |

3

4

I n v entor y A nal y sis

20 26

D OW N TOW N

2 0 2 5 M A R K E T A N A LYS I S

Inventory Analysis

H O U STO N

O F F IC E

STO RY

Downtown Houston+’s Office Story measures the 12-month Downtown competitive leasing cycle

Why do we do this study?

•

Proprietary and longitudinal: Report is in its 42nd year of publication, started in 1985 by Stewart O. Robinson

•

Downtown’s office inventory is heavily concentrated in Class A space, which accounts for approximately 75% of total inventory. However, performance varies significantly within that Class A segment, with a clear divide between higher-performing and lower-performing properties

•

To better capture these differences, surveyed buildings are organized into three tiers. This tiering approach helps highlight trends among Downtown’s top office towers, including newly constructed and recently renovated properties, while also distinguishing them from older or lower-performing assets •

Tier I: Top-tier Class A properties, including the newest, most highly amenitized, and best-positioned office towers

•

Tier II: Lower-tier Class A properties that remain competitive but generally lack the same level of positioning, amenities, or performance as Tier I assets

•

Tier III: Generally, Class B properties, including older or less competitive office buildings

•

•

A unique Downtown Houston office survey that includes: •

Marketed space

•

Large available blocks and full floors

•

Tenants by industry

•

Marketed sublease space

•

Multi-floor tenants

•

Large transactions and tenants new to Downtown

This report surveys buildings that are actively marketing space for lease; it excludes spaces that are owner-occupied and spaces are not being competitively marketed •

Survey conducted January – May 2026, covering all 2025 leasing activity

•

Approximately 31.3 million SF surveyed

•

37 office buildings included

•

More than 2.4 million SF of Downtown leasing in 2025

•

Survey represents 60% of Downtown office inventory, and 81% of leasable Downtown office inventory

5

STO RY I n v entor y A nal y sis

20 25

D OW N TOW N

H O U STO N

O F F I C E

Surveyed Buildings

|

6

2025 Building Count

2025 Total Rentable Square Feet

Tier 1

13

12,799,636

Buildings no longer included in survey due to change in use or marketability:

Tier 2

12

12,306,492

•

919 Milam

•

500 Jefferson

Tier 3

12

6,236,501

Total

37

31,342,629

Total SF Surveyed

36,936,789

36,504,862

32,571,827

32,046,333

31,342,629

Direct Marketed SF

11,331,290

11,106,817

10,753,787

10,156,859

9,327,089

% Direct Marketed

30.7%

30.4%

33.0%

31.7%

29.8%

Net YOY SF Direct Marketed

1,150,225

136,062

1,020,716

(116,905)

(360,195)

Sublease Marketed SF

510,072

817,598

613,033

783,371

458,510

% Sublease Marketed SF

1.4%

2.2%

1.9%

2.4%

1.5%

Net YOY SF Sublease Marketed

(661,760)

307,526

(121,456)

170,338

(324,861)

Total Marketed

11,841,362

11,924,415

11,366,820

10,940,230

9,785,599

% Total Marketed

32.1%

32.6%

34.9%

34.1%

31.2%

I n v entor y A nal y sis

2025

STO RY

2024

O F F I C E

2023

H O U STO N

2022

DOWN TOW N

2021

2 025

Summary of Survey Data

|

7

|

8

19 70 19 72 19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18 20 20 20 22 20 24 20 26

I n v entor y A nal y sis

SQUAR E

3.5

3.0

2.5

2.0

1.5

1.0

0.5

00

Lo u 19 M i si a a i n na 00 M & &5 ain 71 7 Hou (M Te ET xa ston RO s Ce H nt Qs He er ) ss To we r& 81 1 M ain 60 9 M ai Ba nk n at of Te Te Am xas xa s T eric ow a T er ow er

00

4.0

10

M IL L IO N S

H O U STO N

4.5

15

IN

SF, Millions

D OW N TOW N

FO OTAGE

20 25

O F F I C E

STO RY

Historical / Future Building Deliveries Timeline 5.0

15 5

n 0o

0.0

th e ee r G n

SQUARE

1.5

1.0

0.5

2018 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 I n v entor y A nal y sis

2023 2024 2025

STO RY

2017

M IL L IO N S

E 10 sper & O 00 son ne Main , All , en

O F F I C E

2016

&T he ou sto Jo ne nC s en 14 t er 15 Lo uis ian 717 a& Te Ly xa ric s To Tw we oA r lle nC Ly en on te de r llB as ell 91 To 0L we ou r isi a n 3H a ou sto nC 2H en ou te sto r( nC Ex Yo te en un rio te an r) r Sq ua re Gr ee nS tr e et 4H ou sto nC TO en te TA r LP laz He a rit ag eP TC laz a (P E n e ha r se gy II) Tow Th re er eA lle nC 10 01 en Fa te nn r in 3H ou sto nC en ter (I n ter 910 ior ) (Un Lou i s de r C iana on s.)

ain

2.0 H O U STO N

0.0

18 01 M

IN

2.5

5H

FO OTAG E

DOWN TOW N

3.0 2 025

Building Renovations Timeline

|

9

10

M ar k eted

S p ace

20 26

D OW N TOW N

2 0 2 5 M A R K E T A N A LYS I S

Marketed Space

H O U STO N

O F F IC E

STO RY

Marketed Space Overview

• In 2025, the market for direct space tightened by 360,000 square feet • Marketed sublease space decreased year-over-year, from 783,000 square feet in 2024 to 459,000 square feet in 2025 • Tier II and III properties account for 95% of available sublease space • Tier Breakdown: •

Tier I: The market tightened by 245,000 square feet, with a majority of buildings reducing marketed space compared to 2024. 700 Louisiana and 811 Main saw the largest shares of reduced footprints, both decreasing available space by over 100,000 square feet

•

Tier II: The market remained essentially flat, loosening by 5,000 square feet. Performance varied building to building in Tier II space.

•

Tier III: The market tightened by 120,000 square feet. While activity varied building to building, Tier III performance is partly due to leasing, but also due to the removal of obsolete space.

• Tier I change in marketed space is primarily due to leasing activity; This trend would be more pronounced, but Hess Tower added over 200,000 square feet of direct marketed space to Tier I inventory.

• Tier II buildings represent 56% of total direct marketed space • Tier III continues to improve largely due to the removal of obsolete space

11

|

12

M ar k eted

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

S p ace

SQ UAR E

IN

H O U STO N

M IL L IO N S

D OW N TOW N

SF, Millions

FO OTAGE

20 25

O F F I C E

STO RY

Historical Direct Marketed Space

11.0 35.0%

10.0

9.0 30.0%

8.0 25.0%

7.0

6.0 20.0%

5.0 15.0%

4.0

3.0 10.0%

2.0

1.0 5.0%

0.0 0.0%

SF % Available

2019 – 2025 DATA ADJUSTED FOR BUILDINGS REMOVED FROM SURVEY (ONLY ANALYZES BUILDINGS SURVEYED THIS YEAR)

M IL L IO N S IN

5.0 4.0

O F F I C E

3.0

STO RY

SF, Millions

6.0

H O U STO N

FO OTAG E

DOWN TOW N

SQ UAR E

2 025

Historical Direct Marketed Space – By Building Tier

2.0 1.0 0.0

Tier II

Tier III

S p ace

Tier I

M ar k eted

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Tier I 1.3 0.7 0.5 1.5 1.5 1.8 2.8 3.2 2.9 3.1 3.3 2.8 2.7 2.4 2.2 Tier II 2.1 2.0 1.6 1.3 1.5 2.2 2.3 3.7 2.8 3.6 3.9 4.2 5.2 5.3 5.3 Tier III 1.6 1.4 1.8 1.9 1.9 2.3 2.6 2.6 1.4 1.8 2.2 1.9 2.0 2.0 1.9

2019 – 2025 DATA ADJUSTED FOR BUILDINGS REMOVED FROM SURVEY (ONLY ANALYZES BUILDINGS SURVEYED THIS YEAR) |

13

|

14

M ar k eted

S p ace

Direct Sublease

Direct Sublease

5-Year Average (2021-2025)

30.9% 1.9%

10-Year Average (2016-2025)

27.1% 3.4%

O F F I C E

29.8%

2025

H O U STO N

35.0%

2023 2024

D OW N TOW N

40.0%

2020 2021 2022

2018 2019

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

20 25

STO RY

Historical (Direct and Sublease) Marketed Space

1.5%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

DOWN TOW N

Tightening Market

Loosening Market

H O U STO N

2025 2023 2021 2019 2017 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985

O F F I C E STO RY

-1.50

-1.00

-0.50

0.00

0.50

1.50

2.00

2.50

|

ANNUAL NET CHANGE IN SF (MILLIONS)

1.00

S p ace

-2.00

M ar k eted

-2.50

2 025

Marketed Space

15

STO RY O F F I C E H O U STO N D OW N TOW N 20 25

Available Full Floors 450 400 350 300 250 200 150 100

M ar k eted

S p ace

50

|

16

0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sublease 34 29 11 21 29 33 47 102 64 51 50 35 14 29 19 30 18 Direct 155 151 147 112 131 136 141 193 257 324 294 324 391 375 357 318 283 Direct

Sublease

0.0

S p ace

1.1M SF 10-YR Average

M ar k eted

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

SF, Millions 1.5 STO RY

2.0 O F F I C E

2.5 H O U STO N

3.0 DOWN TOW N

564K SF 5-YR Average

2 025

Historical Sublease Full Floor Blocks

1.0

0.5

|

17

STO RY O F F IC E H O U STO N D OW N TOW N 20 26

Marketed Space TA KEAWAYS

• Direct marketed space decreased across Tiers I and III, while Tier II remained essentially flat •

Tiers I and II recorded lease-up activity, while Tier III benefited largely from obsolete space being removed from the market

• Owner-occupiers and conversion activity are creating new opportunities

M ar k eted

S p ace

•

|

18

Space is being taken offline as public and large entities capitalize on opportunities to purchase office assets at lower costs. Additionally, conversion projects are being pursued for underperforming office properties

• Tier II buildings hold the majority of direct marketed space •

This trend has also been observed in quarterly reporting, where Class B space has outperformed lower-quality Class A product in terms of occupancy

• Overall, marketed space conditions are improving •

Leasing activity has shown signs of improvement, while the removal of obsolete space is helping provide a clearer picture of market fundamentals. Taking underperforming assets offline is a positive development, as these properties can weigh on overall market KPIs

Photo by Bonfire Photo 19

20

L easin g

A nal y sis

20 26

D OW N TOW N

2 0 2 5 M A R K E T A N A LYS I S

Leasing Analysis

H O U STO N

O F F IC E

STO RY

Leasing Analysis Overview

• Leasing activity rose 8.5% year-over-year, totaling over 2.4 million square feet •

This marks the second consecutive year of growth in leasing activity

• New leasing activity increased 18% year-over-year, with 845,000 square feet of new leases signed • These trends reflect broader market trends, with the larger Houston market seeing condensed leasing activity in top-tier buildings, with lower-class buildings struggling to attract tenants.

•

While Downtown saw leasing activity improve in 2025, Houston overall saw lower leasing activity compared to previous years.

Tier Breakdown • Tier I: Tier I recorded strong new lease and renewal activity, though expansion activity was down slightly compared to 2024.

• Tier II: Total leasing activity increased 28% year-over-year. Renewals accounted for 72% of Tier II activity, driven in part by two large renewals totaling approximately 400,000 square feet.

• Tier III: Tier III saw lower levels of new lease and expansion activity, but renewal activity remained strong, increasing 76% compared to 2024.

21

SF of Leasing Activity By Year

% of Total Leasing Activity By Type per Year 100%

7,000,000

90%

6,000,000

1,309,419 294,334

5,000,000

845,218

4,000,000

60%

3,000,000

40%

2,000,000

30% 20% 10% 0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

A nal y sis L easin g

70% 50%

1,000,000

|

22

80%

New

Expansion

Renewal

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

STO RY 20 25

D OW N TOW N

H O U STO N

O F F I C E

Transaction Volume

New

Expansion

Renewal

H O U STO N O F F I C E

>50,000 SF 39%

STO RY

5-20,000 SF 30%

DOWN TOW N

<5,000 SF 5%

2025

>50,000 SF 37%

20-50,000 SF 28%

Activity by Size

<5,000 SF 5%

2 025

2024

5-20,000 SF 22%

L easin g A nal y sis

20-50,000 SF 34%

|

23

STO RY O F F I C E H O U STO N D OW N TOW N 20 25

Leases by Size / Type 1,000,000 800,000 600,000 400,000 200,000 0

<5,000

5-20,000

L easin g

A nal y sis

New

|

24

Expansion

20-50,000

>50,000

Renewal

<5K SF

5-20K SF

20-50K SF

50K+ SF

New

23

19

14

4

Expansion

8

11

7

0

Renewal

16

29

10

5

H O U STO N

45

40

35

30

10 9 10

0

L easin g

A nal y sis

2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993

50K+ SF 20-50K SF

STO RY

23 25

O F F I C E

31

20

Transaction #

DOWN TOW N

50

2 025

Large Transactions

15

5

|

25

TOTAL LEASING INCLUDING NEW, EXPANSION, AND RENEWAL

O F F I C E

STO RY

Activity by Tier

H O U STO N

Tier III 16.4%

D OW N TOW N

Tier III 16.2%

20 25 A nal y sis L easin g |

26

2025

2024

Tier II 37.0%

Tier I 46.8%

Tier I 39.9%

Tier II 43.7%

2024

2025

Tier I

1,056,128 SF (8.3% of Tier I inventory) 52 Leases

978,032 SF (7.6% of Tier I inventory) 50 Leases

Tier II

834,738 SF (6.8% of Tier II inventory) 64 Leases

1,070,193 SF (8.7% of Tier II inventory) 51 Leases

Tier III

366,130 SF (5.2% of Tier III inventory) 64 Leases

400,746 SF (6.4% of Tier III inventory) 45 Leases

DOWN TOW N

Tier I

H O U STO N

400,000 350,000

O F F I C E STO RY

300,000 250,000 200,000 150,000 100,000 50,000 0

2 025

Leases by Size (Tier I)

<5,000

5-20,000 New

Expansion

20-50,000

50,000+

Renewal 20-50K SF

50K+ SF

New

6

8

6

3

Expansion

3

7

4

0

Renewal

2

7

3

1

A nal y sis

5-20K SF

L easin g

<5K SF

|

27

STO RY 20 25

D OW N TOW N

H O U STO N

O F F I C E

Leases by Size (Tier II) Tier II 600,000 500,000 400,000 300,000 200,000 100,000 0

<5,000

5-20,000

L easin g

A nal y sis

New

|

28

Expansion

20-50,000

50,000+

Renewal

<5K SF

5-20K SF

20-50K SF

50K+ SF

New

4

5

5

1

Expansion

4

2

2

0

Renewal

7

12

6

3

H O U STO N

180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

DOWN TOW N

Tier III

2 025

Leases by Size (Tier III)

O F F I C E STO RY

<5,000

5-20,000 New

Expansion

20-50,000

50,000+

Renewal 20-50K SF

50K+ SF

New

13

6

3

0

Expansion

1

2

1

0

Renewal

7

10

1

1

A nal y sis

5-20K SF

L easin g

<5K SF

|

29

STO RY O F F IC E H O U STO N D OW N TOW N 20 26

Leasing Analysis TA KEAWAYS

• Continued gains in leasing activity point to ongoing • Tier II properties continue to struggle in attracting market recovery new tenants •

Ripple effects from the pandemic, as well as the preceding oil slump, appear to be moderating as the market moves toward a new equilibrium

• Renewal activity surged in 2025

L easin g

A nal y sis

•

|

30

While renewals are partly a function of market timing, fewer companies appear to be reducing their footprints when renewing

•

Despite accounting for 39% of surveyed inventory, Tier II

properties represented only 27% of new leases signed in 2025

• Overall, leasing activity is improving, but remains below historical norms •

Total leasing activity increased 8.5% and 17.2% compared to 2024 and 2023, respectively; however, 2025 leasing activity remained approximately 42% below the 10-year prepandemic average

Photo by Egidio Narvaez 31

32

O cc u p ier

A nal y sis

20 26

D OW N TOW N

2 0 2 5 M A R K E T A N A LYS I S

Occupier Analysis

H O U STO N

O F F IC E

STO RY

Occupier Analysis Overview

• Occupancy by industry remained relatively stable •

Legal and FIRE tenants increased their share of total occupancy, while energy tenants represented a smaller share of occupied space

• Legal and FIRE tenants continue to favor Tier I space •

Legal and FIRE tenants have 69% and 66% of their total occupancy in Tier I buildings, respectively. By comparison, only 33% of energy tenants’ total occupancy is in Tier I space

• Energy tenants continue to dominate Downtown occupancy •

Despite their share declining, energy tenants still occupy 44% of total occupied inventory

Note: FIRE = Finance, Insurance, and Real Estate

33

Energy Tier III 2.2 M SF

FIRE Tier III 0.6 M SF

Tier I 3.1 M SF

STO RY 20 25

D OW N TOW N

H O U STO N

O F F I C E

Industry Occupancy by Tier (2024)

Tier III 0.4 M SF

Tier II 0.7 M SF

Legal

Tier I 2.4 M SF

Tier II 4.6 M SF

O cc u p ier

A nal y sis

Tier I

|

34

Tier II

Tier III

Tier II 1.3 M SF

Tier I Tier I 3.1 M SF

Tier I

Tier II

Tier III

Tier II

Tier III

DOWN TOW N

Energy

FIRE

H O U STO N

Tier III 0.6 M SF

Tier III 2.1 M SF

O F F I C E

Tier I 3.1 M SF Tier II 0.8 M SF

Legal

Tier I 2.6 M SF

STO RY

Tier III 0.3 M SF

2 025

Industry Occupancy by Tier (2025)

Tier II 4.3 M SF Tier I

Tier II

Tier III

Tier II 1.3 M SF

Tier I

Tier III O cc u p ier

Tier I 3.7 M SF

Tier II

A nal y sis

Tier II

Tier III

|

Tier I

35

STO RY O F F I C E H O U STO N D OW N TOW N 20 25

Industry Trends Proportion of Total Space Occupied by Industry per Year

100% 90% 80%

13.2%

13.5%

13.9%

14.8%

13.0%

17.0%

18.5%

18.9%

17.0%

18.6%

21.7%

21.4%

22.9%

22.2%

24.5%

48.0%

46.6%

44.3%

46.0%

43.9%

2021

2022

2023

2024

2025

70% 60% 50% 40% 30%

O cc u p ier

A nal y sis

20%

|

36

10% 0%

2009

2010

2011

2012

2013

2014

2015 Energy

2016 Legal

2017 FIRE

2018 Other

2019

2020

2022

2023

2024

2025

4+

54

54

52

51

39

37

37

2+

120

125

134

131

101

110

113

1+

260

285

288

281

225

248

250

7

65,146

50,000

5

40,000 30,000

20,691

20,000

-

Tier II

4

3 2

1

1

2,259

Tier I

4

6

Tier III

0

Tier I

Tier II

Tier III

A nal y sis

10,000

# of Companies

60,000

6

O cc u p ier

SF of Activity

70,000

STO RY

New Downtown Occupiers

O F F I C E

2021

H O U STO N

2020

DOWN TOW N

2019

2 025

Multi-Floor Occupiers

|

37

STO RY O F F IC E H O U STO N D OW N TOW N 20 26

Occupier Analysis TA KEAWAYS

• Downtown Houston’s industry mix continues to diversify •

A more diverse tenant base is important for long-term market stability, as it can help reduce the impact of industry-specific disruptions such as the mid-2010s oil slump

• Energy tenants occupy a wider range of office space

O cc u p ier

A nal y sis

•

|

38

Energy tenants appear more willing to pursue discounted space rather than focusing exclusively on top-of-the-line office product

• Energy tenants still occupy the most space of any industry •

While the industry mix is diversifying, energy tenants continue to account for approximately 44% of occupied, leasable space

• Mid-sized and large occupiers are showing signs of recovery •

While the number of tenants occupying four or more floors has remained relatively stagnant, tenants occupying one or two full floors are beginning to tick back up

Photo by Maria Lysaker 39

40 A p p endi x

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D OW N TOW N

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Appendix

H O U STO N

O F F IC E

STO RY

Survey Background

• Now in its 42nd year, this survey provides unique insight into the current competitive Downtown office leasing environment through analysis of primary data.

• Findings support building owners, leasing agents, and investors in making informed business decisions.

• Surveyed buildings have proven the ability to compete for tenants within Downtown’s premier office market, organized into three tiers (I, II, and III). It is intended to complement, not replace, traditional market surveys conducted by brokers, owners, or third-party firms.

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Survey Definitions

• Office Inventory: Total office space in all Downtown buildings regardless of building class or survey tier.

• Survey Universe: Downtown’s premier office buildings classified as Tier I, II & III in this Report.

• Leased Space: All leased spaced regardless of occupancy status.

• Actively Marketed and/or Available Space: Marketed office space regardless of occupancy and lease status.

• Availability Rate: Direct space currently marketed divided by total amount of surveyed space.

• Owner-Occupied: Buildings fully owned and/or occupied by the owner; includes Chevron’s 1500 Louisiana and 1400 Smith; • Leasing Activity: Signed leases during Hilcorp’s 1111 Travis and Partnership the survey year regardless of scheduled Tower (701 Avenida De Las Americas). occupancy status and includes direct, • Energy: Exploration and production sublease, renewals and pre-leasing (E&P), pipeline, mining, utility, chemical activity. and service providers.

• Absorption: Total annual survey change • Legal: Law firms and legal service of square feet marketed regardless of providers. occupancy.

• FIRE: Finance, insurance and real estate.

• Other: Professional and business services, information technology, public administration, retail.

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Notes

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Thank you!

For more information, please reach out to our team:

Cassie Hoeprich Director of Planning & Economic Development cassie.hoeprich@downtownhouston.org

Brendan Harrison Research & Economic Development Coordinator brendan.harrison@downtownhouston.org

downtownhouston.org 1221 McKinney Street, Suite 4250 Houston, TX 77010