


Dear Stakeholders, Investors, Partners, and Friends,
The past year delivered challenges that tested our capacity to respond plus opportunity-opening investments in the future. Since the weather events were catalogued in greater detail in prior editions of this report, this letter will instead focus on the transformative investments made that will expand our skyline and contribute to the vibrancy we are committed to growing.
On the visitor side, Downtown welcomed an impressive 37.4 million visits from 7.9 million unique visitors in 2024. Over the course of a week, visitors comprised 84% of an average weekend population and 56% of a weekday population – underscoring Downtown’s magnetic appeal. The continued growth of visitors reflects our status as a premier destination for sports, theater, entertainment, and commerce.
To support the growth in visitation, we are excited to see the expansion of our hospitality sector with 496 new hotel rooms currently under construction. This additional supply will enhance our capacity to host visitors and ensure that Downtown remains a welcoming destination for both business and leisure travelers. Related, entertainment continues to be a cornerstone of Downtown Houston’s appeal. In 2024, our professional sports teams—the Astros, Rockets, Dynamo, and Dash—hosted a combined 151 games and matches, attracting a total of nearly four million fans. Additionally, our major venues hosted more than 500 concerts and performances, solidifying Downtown as a hub for cultural engagement.
At the human scale, our storefront economy was bolstered through the addition of 17 new establishments that expanded the dining and entertainment scenes for locals and visitors alike. The growth of ground floor options reflects the diverse demand drivers of our community and the broad desire for vibrant, walkable urban spaces.
We are also seeing continued growth in the residential sector. In 2024, 488 new units were delivered, representing a 6.4% growth of our residential inventory. Notably, half of these units are designated as affordable housing for essential workers, ensuring our Downtown is accessible and inclusive. The Warehouse District apartments, which opened in February, are already 75% occupied, a testament to the demand for attainable housing in the area. With 645 total units absorbed in 2024, the residential market is both growing and diversifying – two key community priorities we pursue with determination and creativity.
Finally, the office sector also saw growth, as 375,000 square feet of Class-A office space was delivered to meet the evolving preferences of office tenants seeking higherend product. This investment reflects the continued positioning of Downtown Houston as a critical hub for business.
As we reflect on the highlights of 2024, it is clear that our Downtown is building in important, incremental, and tangible ways. Growth across all sectors points to an opportunistic horizon for our community. As always, we are grateful for the continued support of our partners, stakeholders, investors and the Houston community who make this progress possible. This year-end edition of our quarterly market report will provide further depth and examination of all market segments to ensure you have all the intelligence and insight you need to launch into an even-better 2025.
Best regards,
Kristopher Larson, AICP, LPM President & CEO
37.4M VISITS WERE MADE BY 7.9 UNIQUE VISITORS
488
37.4 M VISITS TO DOWNTOWN
RESIDENTIAL UNITS DELIVERED (6.4% OF INVENTORY)
375K SF
CLASS-A OFFICE SPACE DELIVERED
500+ CONCERTS & PERFORMANCES AT MAJOR VENUES IN DOWNTOWN
645
7.9 M UNIQUE VISITORS
RESIDENTIAL UNITS ABSORBED (7.9% OF INVENTORY)
151 PROFESSIONAL SPORTS EVENTS DOWNTOWN
496 HOTEL ROOMS CURRENTLY UNDER CONSTRUCTION
HOUSTON BREAKS VISITOR RECORD 1 2 3
HURRICANE BERYL & DERECHO: DOWNTOWN’S RESILIENT RECOVERY
Downtown bounced back from two federally declared disasters—a derecho wind event in late spring and Hurricane Beryl in early summer—prompting back-to-back recovery efforts. Collaboration among stakeholders—including DTH+, City of Houston, and property owners and managers— ensured quick action. Crews removed over 400,000 pounds of debris, stabilized properties and restored operations within days of each storm. Ongoing tree replacement aims to rebuild Downtown’s canopy, balancing shade and resilience. Swift recoveries highlight Downtown’s strength and adaptability in the face of formidable challenges.
The Houston region welcomed a record 54 million visitors in 2024—invigorating Downtown’s hospitality industry. Driven by conventions, marquee events like the College Football Playoff National Championship, and investments enhancing the city’s appeal, tourism has fueled a 15% rise in hotel revenue. Downtown anchors this momentum as a central, connected hub, with new hotel developments and George R. Brown Convention Center upgrades paving the way for sustained growth.
CHEVRON CONFIRMS DOWNTOWN AS GLOBAL HQ
Chevron announced their global headquarters relocation to Downtown Houston in August, adding a significant boost to the city’s standing as the world’s energy capital. Chevron has moved its top executives to the heart of Houston, reinforcing Downtown’s allure for Fortune 500 companies with its business-friendly climate, affordability and access to top industry talent.
“
We know from our experience around the world that great communities are built on a foundation of having a great Downtown. And we’re fortunate here in Houston to have a great community, a collection of partners, and we’re going to be proud to call Downtown Houston our permanent home.
“
Bruce Niemeyer Chevron’s President of Americas Exploration & Production
Downtown Houston celebrated several major real estate milestones in 2024, highlighting the market’s appeal. Skanska’s Norton Rose Fulbright Tower, Downtown’s newest Class A office building, redefined sustainable innovation and workplace design with its 28-story, LEED Platinumcertified structure, and groundfloor amenities. Warehouse District Phase 1 added over 300 residential units along with Downtown’s most recent office-to-residential conversion, Elev8, which brought 372 units to South Downtown. CBRE’s purchase of residential tower Skyhouse Downtown and The Wideman Co. choosing to enter the Houston market with Jones on Main underscore fresh commitments to Downtown by major firms, highlighting the importance of the submarket.
4 5 6
International events at the George R. Brown Convention Center helped drive hospitality growth across Downtown, reflected by a year-over-year increase in hotel occupancy and RevPAR. CERAWeek underscored Houston’s role as the energy capital, with global leaders like Bill Gates highlighting its future as the world’s energy tech hub. AfroTech drew 37,000 attendees, strengthening Houston’s role in the community of Black professionals working in tech. And 2024 FIRST Championship—an international finale for youth robotics and a yearly celebration of science, technology, engineering and math (STEM)—welcomed over 50,000 enthusiasts from 58 countries, its largest event yet.
Major investments along Main Street signal a new chapter for Downtown’s historic corridor. University of Houston - Downtown expanded southward to 1801 Main, development group Rebees will lead the transformation of GreenStreet’s three-block urban experience, and the century-old Jones on Main revival continued with Downtown’s largest lease of 2024 and repositioning Finn Hall’s offerings. These investments align with the new design for 11 blocks of Main Street, including the permanent closure of 7 blocks to vehicular traffic—a project launched during the pandemic with the More Space: Main Street pilot. The Main Street Promenade will connect these developments on a pedestrian-focused corridor, uniting Downtown’s key districts.
Downtown Houston+ launched a new mobile web app, making it easier to explore events, dining, parks, public art, and convenient parking—all in one place.
• Visitors are integral to Downtown’s daily buzz: On weekends when most employees are off, visitors account for around 84% of the daily population. However, even on weekdays, visitors are still the majority, at 56% in 2024.
• Retail Opening Successes: The arrival of 17 new retail establishments in 2024 enhanced Downtown’s shopping, dining, and entertainment experience for residents, employees, and visitors alike.
• The Bottom Line: Since the pandemic, visitors now support a larger share of the retail economy.
9.1 M 3.6 M 2 H15 M 37.4 M 7.9 M 2H 26 M
Source:
Source: Placer.ai
Recent openings and announcements add new flavors to Downtown Houston’s lively culinary scene—a melting pot where diverse cultures come together to create something extraordinary. Chef Christian Hernandez channels Houston’s energy and Michelin-starred expertise at Barbacana, blending global influences with hometown pride.
Coming soon: James Beard Award winner Hugo Ortega infuses his Mexican heritage into Xochi and will debut a second Downtown concept in 2025. At Market Square Park, Chef Omar Pereney’s upcoming Petite Lucie reimagines French cuisine as a “love letter to Houston.”
By late 2024, the Main Street Promenade project reached a key milestone with the completion and submission of its design and engineering plans to the City of Houston for final permitting. Construction begins in May 2025 and is set for completion by spring 2026, ensuring readiness for the 2026 FIFA Men’s World Cup.
In Q4, Downtown Houston+ held the fourth and final public workshop to align with residents and stakeholders. Key community-supported features include:
• A Cooler Public Realm: A 154% increase in tree canopy and extensive planting to combat the urban heat island effect.
• Houston’s Historic Blue: Blue tile incorporated in murals near the Preston light rail station and intersection markers, reflecting a distinctive Houston aesthetic.
• Storefront Support: Business incentives to foster a thriving and sustainable commercial environment.
The Main Street Promenade project will prioritize construction in 2025 while supporting businesses through the recently launched Thrive Storefront Grant Program and enhancing safety, security and programming.
With 99% of respondents satisfied with the project’s direction, the Main Street Promenade is set to become a landmark destination for locals and visitors, and a major point of interest during the 2026 FIFA Men’s World Cup.
• Downtown Houston is a World-Class Destination: Our stadiums and major event venues are significant demand drivers for Downtown activity, hosting over 600 events and performances in 2024 from some of the top acts in the world.
• The Bottom Line: These major events bring millions of individuals Downtown each year, boosting our hotel performance and economy.
Downtown hosted 500+ concerts and peformances in 2024, more than one top-billing act daily, at five major venues--713 Music Hall, Bayou Music Center, Minute Maid Park, House of Blues, and Toyota Center. These events showcased many performances including the Houston Ballet, the Houston Symphony, and several Broadway shows, along with concerts from the likes of Madonna, Lil Wayne, Usher, and more.
George R Brown also drove significant businessoriented demand and travel Downtown. The NAPE Summit, a conference for energy professionals to meet, network, connect and do business, helped Downtown Houston achieve a 95% occupancy, a 20 point lift over last year for the comparative NAPE 2023 days.
In 2024, the Astros, Rockets, Dynamo and Dash brought over 3.9 million fans to Downtown for 151 games and matches. The Dynamo saw a 13% yearover-year increase in attendance, ranking among the top MLS teams in growth from 2023 to 2024. On game days, Downtown welcomes anywhere from 6,000 to over 40,000 fans—many of whom visit nearby restaurants and shops before and after events.
The total Downtown professional sports attendance in 2024 is equal to 7.5x the population living inside Houston’s 610 Loop!
Tracking population spikes driven by major events, concerts and gamedays, this data offers valuable insights into a year’s worth of activity patterns and opportunities for growth.
An average day Downtown in 2024 saw 102k visits. This means that point at 0% - the “Baseline Average” - would have seen 102k visits that day, while a point at 100% would mean that day say approximately 204k visits.
• Houston Dynamo FC vs. Red Bulls
• Commodity Classic at George R. Brown
JULY 26-28
• Houston Astros vs. Los Angeles Dodgers
• Peso Pluma at Toyota Center • Houston Dynamo FC vs. Atlas FC
SEPTEMBER 6-8
• Red Bull Showrun
• Houston Astros vs. Arizona Diamondbacks
• Houston Dynamo FC vs. LA Galaxy
SEPTEMBER 17-20
Gastech Conference at George R. Brown Brought 50,000 attendees from 156 countries
OCTOBER 23 Houston Rockets Opening Tipoff
NOVEMBER 28 75th Annual H-E-B Thanksgiving Day Parade
DECEMBER 1-31
City Lights, Downtown’s signature holiday celebration, invited visitors from across Greater Houston to explore a dozen iconic Downtown locations. Holiday goers enjoyed local markets, silent disco parties and visits with Santa along with the debut of a new attraction, Snow Glow on the Bayou.
The new installation at Allen’s Landing—Houston’s birthplace—introduced shimmering water screen projections by local artists and an illuminated Main Street Bridge. This expansion of City Lights to include the bayou shores, with sold-out bus and boat tours, connected Downtown’s holiday festivities and the city’s historic waterfront.
Despite an increasing vacancy rate, market rent has continued to tick up as demand for trophy buildings remains high. As we near the end of companies rightsizing their office space needs from pre-pandemic times, and companies continue to usher employees back to the office full time, we expect to see an increase in demand for Class A office space in 2025.
• Market Asking Rents See a Continued Uptick: Market rents have seen increases in the latter half of 2024 compared to the first half. We ended the year up 1.2% and 0.9% year-over-year in overall and Class-A market asking rents, respectively.
• Vacancy Continues to Creep Up: Market vacancy increased by 0.9% year-over-year as companies continued rightsizing their office footprint. However, this trend will slow in 2025 as many companies have now renewed their pre-pandemic leases.
• Expect to See a Continued Increase in Employee Activity: We saw major entities including JPMorgan Chase and the City of Houston announce that they expect employees to return-to-office full time in 2025.
Source: CoStar
Leasing Activity
Source: CoStar
Class A buildings’ share of direct leasing activity dropped by about 5% from 2023, and Class A buildings’ share of subleasing activity increased by nearly 7%. However, Class A properties still make up a majority share of total leasing activity in the submarket.
Premium offices continue to drive demand, specifically among law firms. In Q4 2024, Texas Tower leased up 182,000 SF to a current occupancy of nearly 92%.
Source: CoStar
In Q4 2024, Downtown Houston+ hosted two targeted broker events, bringing together office real estate and tenant brokers for a luncheon, followed by a retail-focused happy hour gathering days later.
These events fostered meaningful discussions on how Downtown Houston+ supports their deals and projects while equipping them with the tools to better position Downtown to their clients.
Attendees also learned about our investments in storefront grants, public realm enhancements, and quality-of-life initiatives.
With strong engagement and positive feedback, Downtown Houston+ will expand these events to a semiannual schedule with four planned for 2025.
As more companies, including JP Morgan Chase and the City of Houston, transition to increased in-office expectations, Downtown’s employee recovery continues to grow.
This trend is echoed nationwide with major employers like Amazon, AT&T and Goldman Sachs.
As we settle into recovery, Downtown Houston has evolved, offering a dynamic environment that meets the changing needs of today’s workforce.
Downtown Houston solidified its status as a premier business hub in 2024, securing over 350,000 square feet in major corporate office leases.
Chevron’s decision to relocate its global headquarters to Downtown anchored a year of notable office moves, while Norton Rose Fulbright’s selection of 1550 on the Green as its new home—now bearing the firm’s name—reinforced the District’s appeal to professional services firms. Plus, the 1M-squarefoot, Class A Texas Tower reached 94% occupancy, complemented by expansions from energy sector leaders and law firms.
These strategic moves across Downtown’s diverse office inventory demonstrate its enduring strength as a world-class business destination.
“It gives us the opportunity to really lay back and enjoy life because even though it’s a huge urban city...it’s almost like its own city within a city.”
• Downtown contains 24% of residential inventory within a 2-mile radius
• Downtown contains 12% of units under construction in a 2-mile radius from the center of Downtown
• Average asking rent Downtown is 25% higher than the 2-mile radius average
• Downtown vacancy is 0.7% higher than the 2-mile radius, and 2.8% higher than within Houston’s 610 Loop.
• Downtown vacancy has decreased by 3.3% over the last year, while vacancy in the 2-mile radius and within Houston’s 610 Loop has increased by 1.1% and 1.0%, respectively.
Source: CoStar See Page 34 for “Central Houston” map boundary
The Warehouse District, a three-building multifamily property constructed in 2024, offers 488 units and is already about 75% occupied since its first phase opened in February.
Developed and owned by Urban Genesis—known for promoting real estate affordability—the 488-unit community includes a partnership with the Houston Housing Authority. Through the Essential Workforce Housing Program, half of the units are reserved for moderate- to middle-income individuals and critical workforce professionals, including nurses, teachers and first responders.
488
RESIDENTIAL UNITS DELIVERED
Market Square Park’s kiosk is being expanded and renovated to welcome Petite Lucie, a Frenchinspired café and restaurant by local chef Omar Pereney, opening spring 2025. Building on his Love Croissants success, Petite Lucie will offer early-morning croissants and breakfast bites, bistro dining, a cozy outdoor bar, catering for Downtown, and special packages for park events—all designed as an all-day destination for residents, workers and visitors.
Downtown Houston+ is investing $2.25M in 2025 to enhance street-level storefronts, restore historic façades, and boost public realm vibrancy through property improvement grants. The recently launched Thrive Storefront Grant Program’s impact can already be felt at spaces like Barbacana, where chef Christian Hernandez’s new restaurant utilized the matching grant to enhance lighting and eventually expand into outdoor dining space.
Astros baseball remains an engine for Downtown activity, with Daikin Park (formerly Minute Maid Park) looking to draw 2.5 million visitors this upcoming season. Plans for a new entertainment complex adjacent to the ballpark will add to the energy in the eastern part of Downtown.
Downtown Houston kicked off the new year with marquee events like the 53rd Chevron Houston Marathon—the city’s largest singleday sporting event—followed with Lunar New Year celebrations, Black History Month tributes, the start of Rodeo season and more.
These signature occasions attract tens of thousands of visitors, contributing to Downtown’s 37.4M visits in 2024, with an average stay of 2.5 hours. Importantly, visitors often venture beyond venues to support local restaurants, attractions and businesses, driving economic growth.
Downtown Houston+ will adopt and begin implementing its Public Realm Action Plan in early 2025, shaped by public feedback and collaboration with Downtown place management partners. The Plan provides a vision and roadmap to evolve the Downtown experience, focusing on enhancing sidewalks, parks and street-level public spaces. Priority areas include pedestrian-friendly walking corridors, a plan for the future of Downtown’s tunnels, and new park programming. The Action Plan’s overall goal: a livable, connected and thriving Downtown.
Exciting enhancements are on the way for Trebly Park, Downtown’s newest green space. A new trellis shade structure will soon provide relief over the playground and other sun-soaked spots, complementing the park’s playful design. Shade umbrellas are also coming to the dog park, ensuring a cooler experience for furry friends. Additional improvements—including public art and seating—are planned for later this year, further enriching this neighborhood gathering spot. Construction is set to begin soon, with completion of these projects expected throughout 2025.
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. Its family of aligned entities – Central Houston, Inc., Houston Downtown Management District and Downtown Redevelopment Authority – collectively advance a shared mission to champion and enhance Downtown Houston as a connected and thriving place for everyone. For more information, visit downtownhouston.org.
JENNA BEASLEY Marketing Manager
DAVID CISNEROS Economic Development Manager
BRENDAN HARRISON Research & Economic Development Specialist
CASSIE HOEPRICH Director of Planning & Economic Development
JUSTIN JERKINS Communications Specialist
KRIS LARSON President & CEO
CLINT SELF Creative Strategy Lead ANN TAYLOR Director of Engagement
DOWNTOWN REDEVELOPMENT AUTHORITY BOARD
BRANDON MARTIN
EGIDIO NARVAEZ CONTRIBUTING PHOTOGRAPHERS
If you have inquires related to the data and information presented in this report, please contact cassie.hoeprich@downtownhouston.org.
To learn more about Downtown Houston+ Clean + Safe services, reach out to operations@downtownhouston.org or visit downtownhouston.org.
Curtis Flowers Executive Director, JPMorgan Chase Director Regina Garcia Interior Design, Curator Consultant, Corporate Gifts Treasurer/ Investment Officer Keith Hamm Emeritus Professor of Political Science, Rice University
Director James B. Harrison Principal, Harrison Kornberg Architects
Director Kirby Liu Managing Director, Lovett Group
Secretary Barry Mandel President & Park Director, Discovery Green, Retired
Director Tiko Reynolds-Hausman Chief of Staff of Operations, Harris County Precinct 2
Vice Chair Michele J. Sabino Consultant, Third Sector Services
Director William J. Taylor, III Director, Development and Infrastructure, Harris County Precinct 1, Retired
Director Crystal Allen Managing Director, Transwestern
Director Sean Alley Vice President, Operations, Brookfield Properties Operated by CBRE
Director Kinder Baumgardner Managing Principal, SWA Design
Director Genora Boykins Asst. Regional General Counsel - Retired, NRG Energy, Inc.
Director Clay Crawford Partner, Sears & Crawford L.L.P.
Director Marcus Davis Owner, Kulture
Director Jacques D'Rovencourt General Manager, Hilton Americas- Houston
Director Kelly Foreman Executive Vice President, Amegy Bank
Director Irma Galvan Owner, Irma's Original
Chair Leslie Garcia Ashby Partner, Ashby, LLP
Secretary Marian Harper Vice President, Foundation Development, Houston Astros LLC
Director Gilbert A. Herrera President, Herrera Partners
Director C.C. Huang CPC Corporation
Director Angus Hughes Executive Director, Cushman & Wakefield
Director Antoinette M. (Toni) Jackson Principal, The Banks Law Firm
Director Lacee Jacobs Senior Vice President, Strategic Leasing & Advisory, Parkway
Vice Chair Robbi Jones President, Kipling Jones & Co.
Director Roland Kennedy Internal Stakeholder Manager, Corporate Real Estate, Chevron
Director Sean Liu Head of Legal, Lionstone Investments
Director Benjamin Llana Vice PresidentDevelopment, Skanska
Director Nick Massad III Senior Vice President of Development, American Liberty Hospitality
Director Sherea McKenzie Executive Director, J C Hester House
Director Kenny Meyer President, MC Management & Development
Director Randy Pryor Vice President, Distribution Operations, CenterPoint Energy
Director Edna Ramos Downtown Property Owner
Director Frem Reggie Managing Director, Hines
Director John Schafer Managing Director, Hyatt Regency Houston
Treasurer & Investment
Officer Richard Torres President and Executive Director, Christus Foundation for Healthcare
Director Dr. Loren Blanchard President, University of Houston-Downtown
Vice Chair Stephanie Burritt Co-Managing Director, Principal, Gensler
Director Ric Campo Chairman & CEO, Camden Property Trust
Chair Dilip Choudhuri President & CEO, Walter P Moore
Director Matt Damborsky EVP, Skanska USA Commercial Development
Director Johnathan J. Edgeller Managing Director & Region Manager, JP Morgan Chase & Co.
Director Laura Edrington Managing PartnerHouston Office, Locke Lord LLP
Director Mark C. Evans Co-Chairman, Bracewell LLP
Director C. Richard Everett Chairman & CEO, Everett Interests
Director Tilman J. Fertitta Chairman & CEO, Landry’s Restaurants, Inc.
Director Bradley R. Freels Chairman, Parkway
Director Adam Green Shareholder, Baker Donelson
Director Fred B. Griffin Co-Chairman, Griffin Partners, Inc.
Director Hillary Hart Executive Director, Theatre Under The Stars
Director Michael Heckman President & CEO, Houston First Corporation
Director Wendy Heger Principal, Page
Director Jeffery Hildebrand Executive Chairman and Founder, Hilcorp Energy
Treasurer Alex Jessett President and Chief Financial Officer, Camden Property Trust
Director Steven J. Kean President & CEO, Greater Houston Partnership
President & CEO Kristopher Larson President & CEO, Central Houston, Inc.
Director Julie Luecht Office Managing Principal, KPMG LLP
Director Ira Mitzner President & CEO, RIDA Development Corp
Director Niloufar Molavi Global Leader Oil & Gas, PwC
Director John Mooz Senior Managing Director, Hines
Director Stephen Newton Managing Director/ Area Manager, Russell Reynolds Associates
Director Hong Ogle
Houston Market President, Bank of America
Director Travis Overall Executive Vice President, Brookfield Properties
Director Kathy Payton President & CEO, Fifth Ward Community Redevelopment Corporation
Director Daron Peschel Sr. Vice President In Charge, Federal Reserve Bank, Houston Branch
Director Theola Petteway Executive Director, OST/Almeda Corridors Redevelopment Authority
Secretary David Ruiz SVP, Community Relations, Bank of America
Director Cody Schneider Partner, Winstead
Director David Stevenson SVP, Amegy Bank of Texas
Director Aaron Thielhorn Houston Market Leader, Managing Director, Trammell Crow
Director Amber Tierce Corporate Affairs Manager, Houston, Chevron Corporation
Director Jennifer Wagner Office Director & Studio Practice Leader, Education Partner, HKS, Inc.
Director Jason Wells President & CEO, CenterPoint Energy
Director Melinda Yee Houston Managing Partner, M&A Transaction Services, Deloitte
CoStar
Downtown Houston+
Houston First Corporation
Placer.ai
Baseball-reference.com
Basketball-reference.com
Concertarchives.org