Downtown Mid-Year Market Report 2026

D OWNTOWN

Mid-Year Market Report

20 26 downtownhouston.org

Q1 + Q2 2026

Advertisement or Photo 8.5x11” + .125” bleed

Cool + Connected Corridors Texas Avenue

D OWNTOWN

Mid-Year Market Report Main Street Promenade Grand Opening

Contents 4

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CEO Letter + Highlights Development Map Office Private Development Public Realm

Mid-Year 2026 18

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Retail Major Events How We Can Support Data Appendix About Downtown Houston+

Table of Contents

3

Letter from our CEO

At the midpoint of 2026, Downtown Houston’s market performance reflects a district that is not simply recovering. It is adapting, reinvesting and building greater momentum across each of the critical pillars that drive the Downtown economy.

During the first half of the year, Downtown welcomed

companies competing for talent, strengthening culture and positioning themselves for long-term growth.

Downtown’s residential market is also absorbing recently completed inventory. Vacancy across the district fell to 10.3%, its lowest level since the end of 2019, while the conversion of the 1021 Main building will introduce

19.9 million non-employee visits from 7 million unique

460 apartments and 93 corporate suites. Together, these

visitors, representing year-over-year increases in both

indicators point to sustained demand for a more complete

overall activity and the number of people choosing to

Downtown neighborhood where people can live, work and

spend time in the district. That momentum continued in

participate in the city’s cultural and civic life.

the second quarter as Downtown became a key activity center for hosting the 2026 FIFA Men’s World Cup. During that period, Downtown recorded 10 million visits and 4.4 million unique visitors. This level of visitation reinforces Downtown’s enduring role as the region’s most concentrated center for business, hospitality, entertainment, civic activity and major events.

On the supply side of visitation, hospitality continues

Perhaps the most important story of this quarter, however, is the scale of reinvestment reshaping Downtown’s existing assets. From historic properties such as 917 Franklin to landmark office towers like 910 Louisiana, building owners are modernizing interiors, improving amenities and strengthening connections to the public realm. Some of Downtown’s legacy hotels, such as the JW Marriott, plus activity generators such

to add both capacity and quality. Two hotel projects

the Toyota Center and GreenStreet are similarly being

delivered 332 new rooms this year, while an additional

refreshed to meet changing expectations and create

conversion got underway at the Scanlan building.

more reasons for people to stay, explore and return.

Meanwhile, the hulking new convention center expansion continues its build on the southeast side of Downtown.

Propelled by large events such as the World Cup and major conventions, average daily rates and hotel revenue are also rising, reflecting the strength of Downtown’s visitor economy and its ability to compete for regional, national and global audiences.

This next cycle of Downtown development is being defined as much by thoughtful reinvestment as by new construction. By adapting older buildings, adding housing and hotel capacity, improving street-level amenities and connecting private investment to a more welcoming public realm, Downtown is becoming more resilient, competitive and relevant to the future of Houston.

The underlying office market indicators are equally encouraging. Office tenants signed 54 leases totaling 918,000 square feet during the first half of the year, including significant expansions by Crescent Energy and Mitsubishi Corporation (Americas), as well as longterm renewals by Porter Hedges and Mayer Brown.

These decisions demonstrate that well-located, highly

Kristopher Larson, AICP, LPM President & CEO

amenitized office environments remain essential to

4

CEO Letter

Downtown Mid-Year Market Report

Highlights

Total non-employee visits to Downtown Houston, 1H 2026

Unique non-employee visitors to Downtown Houston, 1H 2026

Average non-employee daily visits to Downtown Houston, 1H 2026

Office activity recovery rate, 1H 2026 vs 1H 2019

Office leasing activity, 1H 2026

METRO Park & Ride Rides (Q3 2025 – Q2 2026)

Q1 + Q2 2026

19.9M 1.2 7.0M 2.8 110K 81% 1.5 918K 4.6M 20.0

YoY

%

YoY

%

YoY

%

YoY

%

Highlights

5

Development Map

Scanlan Building 1

Hospitality

2027

Status

Under Construction

-

Developer

SLTX Capital

Rentable Area Number of Rooms

Address

405 Main Street

Number of Stories

Public Realm

Retail

Estimated Delivery

2026

Status

Under Construction

187,000 SF

140

Developer

Downtown Redevelopment Authority

Gross Area Number of Rooms

11

Address

400 Rusk Street

Number of Stories

-

-

Buffalo Bayou Greenway Connector

Hospitality

Status

Under Construction

500,000 SF

Developer

Houston First Corporation

Rentable Area Number of Rooms

Type

Public Realm

Estimated Delivery

2026

Status

Under Construction

-

-

Developer

Houston Parks Board

Rentable Area Number of Rooms

Address

1420 Chenevert Street

Number of Stories

-

Address

-

Number of Stories

-

-

8

Toyota Center Upgrades 3

Office

Public Realm

Estimated Delivery

Type

Hospitality

Type

7

George R. Brown Convention Center Expansion 2

Mixed-Use

Tranquillity Park Estimated Delivery

Type

Residential

-

Remembrance Park

Type

Mixed-Use

Estimated Delivery

Status

Under Construction

Rentable Area

-

Type

Public Realm

Estimated Delivery

2029

Status

Proposed

Gross Area

Developer

Clutch City Sports & Entertainment

Number of Rooms

253,000 SF

-

Developer

Harris County Precinct 1

Number of Rooms

Address

1510 Polk Street

-

Number of Stories

-

Address

1115 Congress Street

Number of Stories

-

Fall 2027

9

1021 Main 4

Type

Mixed-Use

Estimated Delivery

Q4 2027

Status

Proposed

Rentable Area

780,530 SF

Developer

3L Real Estate

Number of Rooms

553

Address

1021 Main Street

Number of Stories

29

Houston Astros Entertainment District 5

Type

Mixed-Use

Estimated Delivery

-

Status

Proposed

Rentable Area

60,000 SF

Developer

Crane Capital Group

Number of Rooms

300

Address

-

Number of Stories

17

910 Louisiana Upgrades 6

Type

Office

Estimated Delivery

2027

Status

Under Construction

-

Developer

Hines

Rentable Area Number of Rooms

Address

910 Louisiana Street

Number of Stories

-

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D E L I V E RED

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R E C E N T LY

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VE RED

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Home2 Suites & Tru by Hilton

12

J.W. Marriot Expansion

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Main Street Promenade

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Cool + Connected Corridors: Texas Ave

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Holiday Inn Express & Staybridge Suites

13

Ely at the Ballpark

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Downtown Overlay Project

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Market Square Park: Petite Lucie

6

Development Updates

Downtown Mid-Year Market Report

WHIT

EO

AK

BA

YO

10 U

F BUF

14

ALO

B AY

OU 8

13 69

9

59

17 1 45

11

16

7

5

12 6 4

2

3

10

69 59

BRAZOS

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Office Office Demand is Evolving—and Quality Matters More Downtown’s office market is moving into a more defined cycle.

Central Houston’s 42nd Office Story, which tracks Downtown office conditions across more than four decades, shows a market still working through elevated availability and uneven demand.

But it also points to improving signals: marketed space is tightening, sublease pressure is easing and new leasing is picking up.

Read the Office Story by scanning the QR code or visiting dthplus.org/officestory26

The takeaway is clear: demand is more selective, and quality is leading the market.

Long-View Perspective

Newer Class A is Performing

Office Story helps separate short-term disruption

Class A space delivered since 2001 totals

from longer market patterns. Downtown has

approximately 10.2 million square feet and is

moved through multiple cycles before, and

more than 86% occupied.

today’s story is one of active repositioning— solidifying its role as one of Houston’s most important long-term business districts.

Quality is Creating Separation Well-capitalized, well-located and wellamenitized buildings are better positioned, while older or less differentiated assets face more pressure.

The strongest Downtown opportunities are tied to buildings that meet modern tenant expectations, including what’s outside the lobby.

8

Development Updates

Newer, higher-quality Downtown office product continues to demonstrate strength.

District Experience Matters Tenants are looking beyond the building. Public realm investment, walkability, hospitality, dining, entertainment and nearby destinations are increasingly part of the office value proposition.

Downtown’s best office story connects quality buildings with a stronger surrounding district experience.

Downtown Mid-Year Market Report

The Workplace Decision is Now a District Decision Tenants are choosing more than office space.

They are evaluating how a location supports employees, clients, recruits, leadership and brand identity.

That gives Downtown a distinct advantage.

The density of business, civic life, hospitality and dining, transit and entertainment creates a workplace setting built for connection.

Business Concentration Is Key

The District Supports the Workday

Downtown remains a center for finance,

Restaurants, hotels, parks, public spaces,

insurance, real estate, energy, legal, professional

transit and major destinations all help shape the

services and civic institutions.

employee and client experience.

Downtown gives companies proximity to the

A Downtown address offers more than workplace

clients, partners, peers and decision-makers that

access; it offers a full business environment.

shape business.

Co-Location Creates Value

Leases Show Confidence Recent leases and expansions show that tenants

Companies benefit from being near related

continue to choose Downtown when the building,

industries, major employers, courts, civic

location and surrounding experience align.

Downtown supports the everyday interactions that help business move faster.

Q1 + Q2 2026

NEW LEASES

institutions, and professional networks.

• Mitsubishi Corporation moved and expanded to 92K SF at 1100 Louisiana • Crescent Energy expanded to 132K SF at Chase Tower • Latham & Watkins expanded to 103K SF at 811 Main • Yetter Coleman moved and expanded to 44K SF at Chase Tower

Development Updates

9

Private Development

Reinvestment is Reshaping the Core

Legacy assets are not static. Across Downtown, reinvestment is helping older buildings compete for modern tenants by pairing building upgrades with stronger public realm connections.

Across Downtown, owners and developers are refreshing legacy assets, rethinking underused space, and positioning buildings for a market that values quality, flexibility, access and experience.

This next cycle of Downtown development is about reinvestment just as much as it is new construction: modernizing historic buildings, converting obsolete office space, improving amenities, and reconnecting properties to the public realm around them.

917 Franklin

1021 Main

910 Louisiana

NewForm Real Estate

3L Real Estate

Hines, Partners Real Estate, Gensler, HOK

One of Downtown’s most historic office buildings is being restored for a new generation of tenants through upgraded interiors, refreshed building systems, and new street-level retail opportunities.

A former office tower is being repositioned for residential life and corporate flexibility, with plans for new housing and corporate suites in the heart of Downtown.

Located directly on the Main Street Promenade, 917 Franklin shows how historic character, modern tenant expectations, and pedestrian-focused investment can reinforce one another.

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Development Updates

Its Main Street location gives the project added importance, bringing potential new residents, visiting employees, and more consistent street-level activity to one of Downtown’s most important public realm corridors.

One of Houston’s iconic office towers is being reintroduced with upgraded tenant amenities, including conference, wellness, lounge, terrace and ground-level improvements.

Positioned near the redeveloping Tranquillity Park, Hermann Square and the civic heart of Downtown, 910 Louisiana shows how landmark office assets can remain competitive by investing in both the building experience and the frontdoor public realm.

Downtown Mid-Year Market Report

Downtown’s Skyline Defines Houston

A strong Downtown bolsters the

When Downtown succeeds, that

entire Houston region.

success reaches beyond the core.

One of the region’s greatest assets, Downtown is a thriving central business district that helps Houston attract companies, talent,

It strengthens Houston’s brand, sharpens the region’s competitive advantage, and reinforces the city’s position on the world stage.

investment and global attention.

Fortune 500 Strength Home to 11 Fortune 500 headquarters, Downtown remains Houston’s most powerful concentration of corporate leadership.

Energy at Global Scale Downtown continues to anchor Houston’s global energy identity.

Within the energy industry alone, Downtown has 35 main headquarters, nearly double that of any other Houston submarket. That concentration creates a powerful co-location advantage with established energy leaders, transition-focused companies, infrastructure firms, investors and advisors working near one another in the same urban core.

Q1 + Q2 2026

Development Updates

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Private Development

Hospitality Investment Amplifies Downtown’s Destination Role New investment in Downtown hotels is reinforcing the

Hospitality investment supports that demand while

district’s role as Houston’s front door.

sending a broader market signal: Downtown remains a

Across the first six months of 2026, Downtown averaged nearly 800,000 non-employee visits per week, reflecting

business district, visitor destination, event platform and increasingly mixed-use urban center.

a sustained draw for conventions, business travel, entertainment, major events and more.

New Rooms Build Destination Capacity New hotel keys also entered the market in 2026, like the Holiday Inn Express & Staybridge Suites, which provides a lift to Downtown’s ability to serve a wide range of travelers and visitors.

That added capacity matters as Downtown welcomes more visitors and competes for larger moments on the regional, national and global stage.

Historic Hotels are Reinvesting Downtown’s historic and legacy hotels are being refreshed for a new era of visitors.

Projects at properties such as the JW Marriott, Sam Houston Hotel, Cambria and Canopy by Hilton are bringing renewed energy to buildings that already help define Downtown’s character.

These investments are especially meaningful along corridors like Main Street and Texas Avenue, where the Promenade and Cool Corridor initiative are improving walkability, shade, comfort and street-level connection for a more welcoming visitor experience.

12

Development Updates

Street-Level Amenities Benefit Everyone Hospitality projects are showing how they can help fill everyday amenity gaps. Providing ground-floor retail, food and beverage, convenience offerings and urban grocery concepts will serve hotel guests while also supporting office workers and residents.

These new amenities reinforce the streetscape improvements on Main Street and Texas Avenue, giving people more reason to walk, linger and return.

Downtown Mid-Year Market Report

More Reasons to Stay Downtown

Downtown’s entertainment assets are helping the district serve more audiences, more often.

Investments for 2026 at Toyota Center and GreenStreet are reinforcing a key activity zone and showing how Downtown is extending the workday into dinner, games, concerts, client outings and weekend visits.

Toyota Center Opened in 2003, Toyota Center is being refreshed as one of Downtown’s major sports and entertainment anchors, supporting the district’s ability to

Q2 HIGHLIGHTS

host high-energy events and welcome regional visitors year-round.

• Renovations and upgrades to fan-facing spaces • New or improved premium, hospitality and gathering areas • Technology, seating, concourse, guest experience improvements

GreenStreet Since Rebee’s took over management in 2024, GreenStreet is being repositioned as a more active mixed-use destination, with leasing activity and amenity improvements that support office users, visitors and

Q2 HIGHLIGHTS

eventgoers.

Q1 + Q2 2026

• 20,000 SF of new tenant leasing activity • Amenity upgrades for workers and visitors • Proximity to Toyota Center, METRORail and Main Street Promenade

Development Updates

13

Public Realm

Building a More Walkable Downtown, Block by Block

Downtown’s public realm strategy is becoming visible at street level.

With Main Street Promenade complete and the first phase of Cool Corridors delivered on Texas Avenue, Downtown Houston+ is advancing a more connected pedestrian network guided by the Public Realm Action Plan.

These projects are not isolated improvements. Together, they begin to shape a Downtown where the walk between offices, hotels, restaurants, transit, parks and civic destinations feels more comfortable, intuitive, and worth experiencing.

A Network, Not a One-Off Main Street Promenade serves as a civic spine through the heart of Downtown. It creates a more active, social and pedestrian-focused corridor while supporting restaurants, nightlife, historic buildings and nearby destinations.

Cool Corridors extends that idea into the broader district. The first phase on Texas Avenue strengthens one of Downtown’s most traveled pedestrian routes, improving the connection between major destinations while testing tools that can be adapted elsewhere.

BY T H E N U M B E R S

Together, these investments point to a larger goal: a Downtown where walkability is not limited to a few standout blocks, but becomes part of the district’s everyday infrastructure.

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Comfort You Can Measure In Houston, walkability depends on comfort.

Shade, lighting, planting and better pedestrian space are not cosmetic upgrades; they influence how people move, how long they stay, and whether they choose to return.

Early Cool Corridors readings are starting to show the impact. Surface temperatures under shade structures are averaging 10 degrees lower, with reductions up to 30 degrees in some locations. Nighttime illumination is now two to six times greater than previous conditions.

That data matters because it turns public realm investment into something brokers, owners, tenants and partners can understand: a measurable improvement in the Downtown experience.

111

30ºF

2-6x

28

Trees Planted

Max Temperature Reduction

Increase in Illumination

Blocks Impacted

Development Updates

Downtown Mid-Year Market Report

All Roads Lead to Downtown Downtown’s access story is broader than any single commute pattern.

As Houston’s transit core and central business district, Downtown sits at the center of a regional network that connects workers, residents, visitors and business travelers from across Greater Houston and beyond.

Whether someone is arriving from a nearby neighborhood, a suburban park-and-ride facility, a regional airport or a major highway, Downtown offers multiple ways in—and multiple ways to move once you arrive.

TRAVELER TYPE

GETTING DOWNTOWN

WHY IT MATTERS

Regional Commuters

Park & Ride service through METRO, Fort Bend Transit and The Woodlands Express

Direct commuter access from across Greater Houston

Local Riders

METRORail, bus routes, transit centers and METRO microtransit

Everyday movement into and around the district

Bike & Trail Users

Bayou trails, bike lanes and bike-friendly transit connections

Connections to nearby neighborhoods including the Heights, East End, Montrose, and more

Business and Visitor Travel

Airport connections, including express bus service to IAH and Hobby

Access for clients, convention attendees and global business travelers

Drivers

Garages, surface lots, street parking and multiple highway approaches

Flexible access for employees, visitors and eventgoers

Last-mile movement

Walkable streets, transit stops, bike access and on-demand mobility options

Easier connections between offices, hotels, restaurants, parks and destinations

Mobility by the Numbers • METRO serves more than 1,300 square miles with 21 transit centers and 28 Park & Ride facilities.

• The METRORail system includes 23 miles of service connecting Downtown to major destinations.

• Park & Ride ridership across METRO, Fort Bend Transit and The Woodlands Transit totaled 4.3M riders in 2025.

• Downtown offers roughly 100,000 parking spaces across garages, surface lots and street parking.

• More than a dozen approach routes connect the district to the highway system that surrounds the urban core.

Downtown’s Access Advantage Downtown’s mobility network supports more than the daily commute. It expands access to talent, helps clients and partners reach the district, supports conventions and major events, and gives companies a business address with reach well beyond the Houston region.

Q1 + Q2 2026

Development Updates

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Public Realm Remembrance Park

Civic Spaces Shape Market Perception Civic spaces are an integral part of Downtown’s market story.

Parks, plazas, memorials and gathering places shape first impressions and influence whether Downtown feels

Bordering the courthouse district and Buffalo Bayou, Remembrance Park is planned as a place for reflection, learning and gathering.

Led by Harris County Precinct 1, the 5.8-acre project will transform multiple blocks into a multi-sensory space honoring African American history, memory and the ongoing pursuit of freedom and justice.

the shared spaces where civic life happens.

Major investments are advancing across Downtown through partnerships among city, county, civic and

KEY MOVES

active, welcoming, memorable and cared for—creating • Three connected city blocks shaped by art, native landscaping, shade and gathering areas.

• A stronger link between civic memory, Buffalo Bayou and Downtown’s walkable public realm.

public-sector entities, collectively reinforcing Downtown as a place people want to gather, explore, and return to.

Tranquillity Park

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On Downtown’s east side, the George R. Brown Convention Center anchors Houston’s convention and business gathering economy.

The transformation now underway will expand and modernize one of the city’s most important civic assets.

• New decking, repaired pavers, refreshed hardscape and updated lighting.

• Select perimeter wall reductions to improve sightlines and visibility into the park.

Development Updates

• GRB Houston South, a new 700,000 SF convention building slated for 2028.

KEY MOVES

KEY MOVES

Next to City Hall, Tranquillity Park is entering a new chapter with upgrades that reconnect the park to the seat of city government, the Theater District, and its legacy as a space commemorating the moon landing.

George R. Brown Convention Center

• Two exhibition halls, a multipurpose hall, 225,000 SF of contiguous exhibit space, ground-level retail and dining, and a central atrium.

• A new 100,000 SF pedestrian plaza connecting the convention center area toward Toyota Center.

Downtown Mid-Year Market Report

A Cleaner, Safer, More Welcoming Downtown is Foundational Stewardship is a market priority.

A successful Downtown depends on public spaces that feel clean, safe, welcoming and well managed every day. Perception matters, and so do the daily conditions that shape how tenants, employees, residents, visitors and clients experience the district.

Downtown Houston+ helps coordinate public, private and civic partners around that work.

Through one of the country’s most robust Ambassador networks, dedicated operations teams and on-theground safety resources, Downtown’s public realm is actively managed at a scale unmatched by any other local district.

Who to Call for Support Downtown Public Safety Guides For directions, safety escorts, general information and visible street-level hospitality Downtown Cleaning Ambassadors For litter removal, pressure washing and graffiti response Quality of Life Response Team For humane, trained engagement with people experiencing homelessness or quality-of-life concerns, with connections to outreach and health resources

SEAL Security For support related to aggressive panhandling, trespassing, public intoxication, noise concerns and other security issues District Operations For trash program questions, landscaping or irrigation concerns, street light outages and broader maintenance coordination.

713-223-2003 For clean and safe service requests, stakeholder support and help connecting to the right Downtown team, call the Downtown Service Hotline.

Q1 + Q2 2026

Development Updates

17

Retail

New Openings New names, new flavors, new reasons to be Downtown.

From fast-casual stops to destination dining and nightlife, Downtown’s latest openings are expanding the district’s amenity mix for workers, residents, visitors, eventgoers and clients.

Petite Lucie

Market Square Park

El Tiempo Cantina

POST Houston

All-day French-inspired café, bakery and garden bar from Chef Omar Pereney

Classic Houston Tex-Mex joins a global lineup of culinary faves at POST

Concrete Rose

Layne’s Chicken

1701 Commerce

609 Main Street

Modern and stylish cocktail bar that celebrates Chicano culture

College Station chicken chain lands in central Downtown

Dean’s Downtown

Distrito Federal

316 Main Street

114 Main Street

Historic Promenade bar reopened with lush interior renovations

Mexico-forward Latin bar and nightclub on the Promenade

Spindletop

Bad Chx

Hyatt Regency

Elegant revolving rooftop bar spins again among the Downtown skyline

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Development Updates

223 Main Street

Savory fried chicken hot spot now open on the Main Street Promenade

Downtown Mid-Year Market Report

A Dining Scene with Growing Recognition Downtown’s dining scene continues to expand and earn attention.

James Beard nominations, Michelin Bib Gourmands, international certifications and one of the continent’s best bars offer concrete proof points for Downtown’s destination appeal.

Chef Ope Amosu of ChòpnBlok •

James Beard Finalist

Chef Ope Amosu earned his second James Beard nomination for Best Chef in Texas, bringing bold West African cuisine to POST Houston, one of Downtown’s most visible visitor destinations.

Hugo Ortega & Tracy Vaught

James Beard Finalist

Collectively known as the H-Town Restaurant Group, this pair earned James Beard recognition for Outstanding Restaurateur, highlighting their culinary leadership behind destinations like Xochi and Zaranda, bringing flavors from Mexican and the Americas to the heart of the convention district.

Thai Café

Thai Select Award

The longtime Thai eatery on Franklin brings certified authentic cuisine to Downtown, with Thai Select recognition from Thailand’s Ministry of Commerce—the only Thai restaurant in Houston to earn this award.

Papalo Taqueria at The Finn

Michelin Bib Gourmand

Papalo’s distinctive approach to Mexican and pre-Columbian flavors earned a Bib Gourmand with standout tacos that have also landed them a spot on Texas Monthly’s Top 50 Tacos of Texas list.

Theodore Rex

Michelin Bib Gourmand

For the past ten years, Chef Justin Yu has offered this relaxed fine dining experience at an intimate spot in the Warehouse District.

Bandista

North America’s 50 Best Bars

Hidden inside Four Seasons Hotel Houston, Bandista offers an acclaimed cocktail destination in a 1920s-inspired lounge with a decadent Latin vibe.

Q1 + Q2 2026

Development Updates

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Major Events

Where Houston Comes Together for Major Moments Downtown stands apart for its ability to host overlapping, high-capacity events while keeping the district moving.

From World Cup activity and Astros games to CERAWeek, the World Baseball Classic, Rodeo season and daily business, Downtown brings together transit, parking, hotels and public spaces at an unmatched scale.

March 13 - 14 • World Baseball Classic Quarterfinals at Daikin Park • 65th Annual St. Patrick’s Parade • Katt Williams at Toyota Center

March 6 - 8 • World Baseball Classic at Daikin Park

February 27 - March 1 • Go Texan Day • Rodeo Parade • Rodeo Run • NCA All-Star National Championship

February 14 • Valentine’s Day

350k

• Lunar New Year Festival at Market Square Park • Los Bukis at Daikin Park

300k

• Fantasia & Anthony Hamilton at Toyota Center

250k 200k 150k 100k

AVERAGE DAILY VISITATION (109k)

50k 0

JAN 20

Events

FEB

MAR Downtown Mid-Year Market Report

SOURCE: PLACER.AI

May 16 - 17 • Houston Astros vs. Texas Rangers at Daikin Park • Texas Black Expo Youth Entrepreneurs Exposition at George R. Brown Convention Center

May 2 • FIRST Robotics Championship at George R. Brown Convention Center

April 24 - 25 • Houston Astros vs. New York Yankees at Daikin Park • Houston Rockets vs. Los Angeles Lakers Playoffs at Toyota Center

More Audiences, More Often Downtown’s event calendar is defined by range as much as scale. Celebrations like Lunar New Year, Art Car Parade, Fleet Week, Good Times on Main, cheer and robotics competitions brought diverse communities into the district, reinforcing Downtown as a place for residents, workers, visitors, families, artists, fans and business leaders.

June 16 - 17 • FIFA Group Stage: Netherlands vs Sweden at Houston Stadium • Houston Astros vs. Cleveland Guardians at Daikin Park • A$AP Rocky at Toyota Center

March 26 - 29 • Houston Astros vs. Los Angeles Angels Home Opener at Daikin Park

June 6

• March Madness Sweet 16 at Toyota Center

• Houston Astros vs.

Oakland Athletics at Daikin Park

• March Madness Elite Eight at Toyota Center • Houston Cougar Basketball Watch Party at Avenida Houston • Bayou City Art Festival at Sam Houston Park • Night Light 2026 at Allen’s Landing

APR Q1 + Q2 2026

MAY

JUN Events

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How We Can Support A Clearer Source of Truth for Downtown Current, usable information is necessary to make confident decisions about Downtown.

Downtown Houston+ offers market intelligence tools that make district data easier to access, understand and share.

Our Economic Dashboard, launched in early 2026, brings locally sourced data into one place, offering a clearer view of the office, retail, residential, hospitality and visitation trends shaping Downtown.

Designed to go beyond restating market metrics, the dashboard pairs trusted third-party sources with local insight and primary data, helping users understand not

IN THE DASHBOARD

only what is changing, but why it matters.

Visitor & Workforce Trends

Pedestrian activity, visitation patterns, and office dynamics

Leasing & Housing Activity

Residential growth, office performance, and flight-to-quality indicators

Retail & Hospitality Expansion

New openings, hotel activity, and street-level market signals

Major Infrastructure Milestones

Updates on Main Street Promenade, Cool Corridors, and other public realm investments

Visit the Economic Dashboard at dthplus.org/datadashboard

Need a report or market context? Contact Brendan

Beyond our core digital tools, our research and economic development team can help partners develop custom reports tailored to your strategic needs.

Harrison, Research Manager, at brendan.harrison@downtownhouston.org

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Support

Downtown Mid-Year Market Report

Helping Brokers Tell the Downtown Story Downtown Houston in 2026 is not the same market it was in 2019.

The district has added hotels, public realm investments, restaurants, entertainment options and new urban experiences that matter to tenants, employees and decision-makers.

But those changes only create value if the full story reaches the people making decisions.

Downtown Houston+ works with brokers, partners and organizations like the Greater Houston Partnership to help communicate that story clearly. From construction updates and commute context to parks, happy hours, client amenities and project momentum, we help connect Downtown’s buildings to the district around them.

Planning a client tour? Need project contex† or imagery? Want a clearer narrative for a tenant conversation? We can help turn Downtown’s complexity into a current, credible and compelling market story.

We Are Here to Help Request a Downtown tour Tailored itineraries and expert-led site visits that showcase the district’s strongest assets Access project information and imagery Context, renderings and visual assets for client presentations

Connect with peer voices Introductions to industry peers, tenants and partners who can share authentic Downtown success stories Build stronger client messaging Support translating Downtown’s investments, amenities and market shifts into clear talking points

For this support and more, contact Cassie Hoeprich, Vice President of Planning & Economic Development, at cassie.hoeprich@downtownhouston.org

Q1 + Q2 2026

Support

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Convening the Partners Who Shape Downtown Central Houston, Inc. is the membership organization behind Downtown Houston+ and a driving force for the district’s long-term vision.

For more than 40 years, CHI has brought together Houston’s influential leaders, major property owners,

CHI as a Connector and Problem Solver We work across property owners, brokers, tenants, public agencies, civic institutions and community stakeholders to move ideas into action and help address the district challenges that no single organization can solve alone.

civic partners and decision-makers to ensure Downtown’s role as the region’s economic and cultural core.

Today, our network includes more than 250 leaders whose influence extends beyond Downtown and helps shape Houston’s broader economic future.

Progress in Downtown depends on coordination across public, private and civic sectors. CHI helps bridge those

Join Our Network Help shape the future of Houston’s urban core.

Join Central Houston, Inc. to connect with leaders and support the economic development, urban design, public realm and messaging work advancing Downtown.

conversations, identify barriers, elevate opportunities and align partners around the investments, policies and projects that support a stronger Downtown market.

Save the Date

24

Support

Office Sector Symposium • Thursday, September 17 • 8-9:30am at POST Houston Join us for the inaugural Downtown Houston Office Symposium, a new series convening today’s leaders for a real estate-focused discussion on Downtown as an office destination.”

Downtown Mid-Year Market Report

Tools to Support Deals, Tenants & Downtown Momentum Downtown Houston+ helps brokers, property owners and partners turn market momentum into real opportunities.

Through strategic grants, market tools, convening tours, and targeted communications, we support projects that strengthen Downtown’s street-level experience, improve existing assets, attract tenants and deliver public benefit.

These resources are designed to help move good ideas closer to implementation—whether that means activating a storefront, improving a building edge, supporting outdoor dining or advancing a larger development opportunity aligned with Downtown’s long-term vision.

Thrive Storefront Grants

Façade Improvement Grants

Matching grants of up to $50,000 for ground-level storefront improvements that support retail activity and street-level vibrancy.

Targeted funding of up to $250,000 through the Downtown Redevelopment Authority to help revitalize building exteriors within TIRZ #3 boundaries.

Alfresco Grants

TIRZ Agreements & Tax Reimbursements

Funding to activate outdoor spaces and sidewalk cafes, with up to $10,000 for non-permanent furnishings and an additional $5,000 for permanent fixtures such as awnings and lighting.

Strategic financial tools through TIRZ #3 for major development projects that align with Downtown’s core goals and provide measurable public benefit.

Get Connected Ready to explore resources for your next project or tenant opportunity?

Reach out to the Economic Development team at marlon.connley@downtownhouston.org

Q1 + Q2 2026

Support

25

Data Appendix Tourism Hotel Inventory

Occupancy 9,509

10K 9K

90% 80%

8K

70%

7K

59.5%

60%

6K 50% 5K 40% 4K 30%

3K

20%

2K

10%

1K 0 2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026 YTD + UC

2026

2015

2025

2014

2023

2013

2024

0 2012

Revenue Per Available Room (RevPAR)

Average Daily Rate (ADR) $300

$269.28

$250

$250

$200 $160.22

$200 $150 $150 $100 $100

$50

$50

2026

2025

2023

Demand (Total Rooms)

2024

$0

2026

2025

2024

2023

$0

Revenue

250K

$70M

$60M 200K 172,788

150K

$50M

$46,528,826

$40M

$30M

100K

$20M 50K $10M

26

Data Appendix

2026

2025

2024

$0 2023

2026

2025

2024

2023

0

Downtown Mid-Year Market Report

Office Occupancy

Market Asking Rent ($/SF/Year)

Overall Occupancy

Overall Asking Rent

Class AA Occupancy

Class AA Asking Rent

95%

$55 90.2%

90% $50.22

$50

85% 80%

$45

74.6%

75% 70%

$40 $37.24

65% 60%

$35

55% 50%

$30 2021

2022

2023

2024

2025

Net Absorption (SF)

2026

2021

2022

2023

2024

2025

Employee Recovery

Overall Net Absorption

2026

Total Employee Recovery

Class AA Net Absorption

Individual Employee Recovery

500K

95% 90%

300K 85%

178,560

100K

94.9%

80% 76,191

75%

79.7%

-100K 70% -300K

65% 60%

-500K 55% -700K

50% 2021

2022

2023

2024

2025

2026

SF Leased

2021

2022

3.5M

300

3.0M

INVENTORY (SF)

OCCUPANCY

A

39,385,991

74.7%

> 2001 10,250,013

90.2%

< 1987 29,135,978

69.2%

B

11,926,645

72.4%

C

1,277,141

91.7%

Overall

52,589,777

74.6%

250

SF Leased

1.5M

100

1.0M 50 0.5M

Q1 + Q2 2026

2021

2022

2023

2024

2025

2026 YTD

Number of Leases

150

2.0M

2020

2025

CLASS

2.5M

2019

2024

2026

SF Leased Number of Leases

0

2023

0

Data Appendix

27

Residential

Residential Inventory & Vacancy

Units Vacancy Rate

9K

35%

8K 30% 7K 25% 6K

Units 4K

15%

3K 10% 2K

10.3%

5%

1K

0

0% 2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026 YTD

Residential Statistics Downtown

Greater Downtown

The Loop

Houston MSA

Existing Units

8,451

36,532

145,091

748,125

YoY

2.8%

3.9%

2.6%

2.2%

Under Construction Units

460

924

1,903

11,953

Monthly Avg Asking Rent

$2,269

$1,855

$1,799

$1,375

Asking Rent / SF

$2.33

$2.06

$2.00

$1.52

QoQ

0.2%

1.2%

1.1%

-0.1%

YoY

-1.6%

-0.6%

-0.5%

-1.1%

Vacancy Rate

10.3%

11.9%

10.7%

12.2%

QoQ

-2.6%

-2.4%

-1.4%

-0.4%

YoY

-0.7%

-2.3%

-0.6%

0.5%

Market Cap Rate

6.06%

6.59%

6.70%

6.73%

QoQ

-0.28%

-0.19%

-0.15%

0.00%

YoY

-0.19%

-0.09%

-0.03%

0.13%

28

Data Appendix

Downtown Mid-Year Market Report

Vacancy Rate

20%

5K

Retail Product Categories

Other Office 3% 3% Personal Services 5% Event Venues 6%

Retail Statistics

Stores & Shopping 12%

Professional Services 15%

Total Occupied Street-Level Storefronts

302

Total Available Street-Level Storefronts

80

Food & Beverage 56%

Transit METRO Park & Ride Activity

METRORail Activity

500K

1.6M 444,783

450K

422,441

1.4M

1,356,982

400K 366,958

1.2M

350K 919,285

1.0M

300K 250K

910,903

800K

200K

600K

150K 400K 100K 200K

50K 0

Q1 + Q2 2026

2026

2025

2024

2026

2025

2024

0

Data Appendix

29

About DTH+

Downtown Houston+ stewards the vision of Downtown as a center of global commerce and local culture and Houston’s heart for opportunity, excitement and joy. Downtown Houston+ represents a family of aligned entities – Central Houston, Inc., Houston

Downtown Management District and Downtown Redevelopment Authority – which

advance a shared mission to champion and enhance Downtown Houston as a connected and thriving place for everyone. For more information, visit downtownhouston.org.

Contributing Staff

District & TIRZ Boundaries

Brendan Harrison Manager, Research

Cassie Hoeprich Vice President, Planning & Economic Development

Justin Jerkins Senior Manager, Communications

Kristopher Larson President & CEO

Clint Self Manager, Creative Strategy

Ann Taylor Director, Public Affairs & Media Relations

Photography Credits

TIRZ #3

District Boundary

Bonfire Photo Michael Anthony Leonid Furmansky Maria Lysaker Egidio Narvaez Houston First Corporation NewForm Real Estate

Sources CoStar Downtown Houston+ METRO Placer.ai

30

About DTH+

Downtown Mid-Year Market Report

Our Boards of Directors Houston Downtown Management District (HDMD)

Central Houston, Inc. (CHI) & Central Houston Civic Improvement (CHCI)

OFFICER

NAME

TITLE / ORGANIZATION

Chair

Leslie Ashby

Attorney at Law, Ashby, LLP

OFFICER

NAME

TITLE / ORGANIZATION

Vice Chair

Robbi Jones

President, Kipling Jones & Co.

Chair

Stephanie Burritt

Co-Managing Partner, Principal, Gensler

Treasurer & Investment Officer

Richard Torres

President, CHRISTUS Foundation for Health Care

Vice Chair

Alex Jessett

CEO, Camden Property Trust

Secretary

Marian Harper

Vice President, Foundation Development, Community Affairs, Astros Foundation, Houston Astros

President

Kris Larson

President & CEO, Central Houston, Inc.

Director

Sean Alley

Director of Property Management, Brookfield Properties Operated by CBRE

Treasurer

Jonathan Edgeller

Managing Director & Region Manager, JP Morgan Chase & Co.

Secretary

Niloufar Molavi

Global Leader Oil & Gas, PwC

Assistant Secretary

Jamie Perkins

Executive Asst & Paralegal, Central Houston, Inc.

Director

Leah Casey

Senior Manager, Corporate Affairs, Chevron

Director

Priya Coffey

Managing Partner, Jackson Walker LLP

Director

Mark Evans

Co-Chairman, Bracewell

Director

Hong Ogle

Houston Market President, Bank of America

Director

Kathy Payton

President & CEO, Fifth Ward Community Redevelopment Auth

Director

Daron Peschel

Sr. Vice President In Charge, Federal Reserve Bank-Houston Branch

Director

David Stevenson

President, Amegy Bank Houston

Director

Michael Vinson

Tax Partner, KPMG LLP

Director

Jennifer Wagner

Partner, Office Director, Education Studio Leader, HKS Architects

Director

Ric Campo

Executive Chairman, Board of Trust Managers, Camden Property Trust

Director

Dilip Choudhuri

President & CEO, Walter P Moore

Director

Jamie Flatt

Director / Principal, Page

Director

Adam Green

Shareholder, Baker Donelson

Director

Hillary Hart

Executive Director, Theater Under the Stars

Director

Jeffery Hildebrand

Executive Chairman & Founder, Hilcorp Energy Co.

Director

Deanea LeFlore

Executive Director, OST/Almeda Corridors Redevelopment Auth

Director

Ira Mitzner

President & CEO, Marriott Marquis/RIDA Development Corp.

Director

John Mooz

Senior Managing Director, Hines

Director

David Staas

Shareholder, Winstead PC

Director

Gretchen Sheirr

President of Business Operations, Houston Rockets

Director

Aaron Thielhorn

Houston Market Leader, Trammell Crow

Director

Ryan Barbles

Managing Director, Stream

Director

Matt Damborsky

Executive Vice President, Skanska USA Commercial Development

Director

Michael Heckman

President & CEO, Houston First Corporation

Director

Tom Jasien

Interim President & CEO, METRO

Director

Joe Jett

Partner, Ernst & Young LLP

Director

David Anderson, III

Partner, Off the Record

Director

Matt Asvestas

Managing Director, Stream Realty

Director

Kinder Baumgardner

Managing Partner, SWA

Director

Genora Boykins

Sponsorship Counser, NRG Energy

Director

Clay Crawford

Attorney at Law, Sears Crawford L.L.P.

Director

Jacques D’Rovencourt

General Manager, Hilton Americas-Houston

Director

Marcus Davis

Owner, Kulture

Director

Kelly Foreman

Executive Vice President, Corp R/E & Facilities, Amegy Bank

Director

Irma Galvan

Owner, Irma's Original

Director

Stephen Hester

Senior Vice President, Centerpoint Energy

Director

C.C. Huang

Senior Advisor, CPC Corporation

Director

Angus Hughes

Senior Director, Cushman & Wakefield

Director

Antoinette Toni- Jackson

Principal, The Banks Law Firm

Director

Roland Kennedy

Manager, Internal Stakeholder Managers, Chevron Corporation

Director

Spencer Lightsey

Associate Director of Corproate & Foundation Relations, University of Houston-Downtown

Director

Sean Liu

General Counsel, Outpost

Director

Ben Llana

Vice President-Development, Skanska USA Commerical Development

Director

Tiger Lyon

Design Director, Gensler

Director

Nick Massad III

Senior Vice President, American Liberty Hospitality, Inc.

Director

Kenny Meyer

President, MC Management & Development, Inc.

Director

Anna Mod

Director, Ryan

Director

Edna Ramos

Downtown Property Owner,

Director

Frem Reggie

Managing Director, Hines

Director

Joey Sanchez

Founder & CEO, Cup of Joey

Director

Reggie Wilson

Partner, Norton Rose Fulbright

Downtown Redevelopment Authority (DRA)

Director

Steve Kean

President & CEO, Greater Houston Partnership

OFFICER

NAME

TITLE / ORGANIZATION

Director

Giles Kibbe

Executive Vice President & General Counsel, Houston Astros

Chair

Curtis Flowers

Executive Director, J.P. Morgan

Director

Steve Newton

Managing Director & Practice Leader, Russell Reynolds Associates

Secretary

Barry Mandel

President & Park Director, Discovery Green, Retired

Director

Jessica O'Neill

President of Business Operations, Houston Dynamo & Dash

Director

James B. Harrison

Principal, Harrison Kornberg Architects

Director

Ryan Walsh

CEO, Harris County-Houston Sports Authority

Director

Kirby Liu

Managing Director, Lovett Group

Director

Jason Wells

Chair of the Board, President & CEO, CenterPoint Energy

Director

Tiko Reynolds-Hausman

Chief of Staff of Operations, Harris County Precinct 2

Director

Melinda Yee

Houston Managing Partner, US M&A Services Leader, Deloitte

Director

Michael Ereti

Director, Development and Infrastructure, Harris County Precinct 1

Q1 + Q2 2026

About DTH+

31

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