High-quality office properties have been at the forefront of the asset class’s post-pandemic recovery nationwide—a trend that continues in 2025, particularly in Houston, according to Avison Young’s first quarter market report. In Houston, trophy office assets were the primary driver of positive demand, with more than 340,000 square feet absorbed, largely due to LyondellBasell’s 318,000-square-foot relocation. By comparison, total net absorption for the quarter was 194,000 square feet, underscoring the outsized impact of trophy properties on the market’s performance.
"A clear preference for high quality, well-amenitized office spaces in prime locations is driving current occupier demand, leading to supply constraints in the top-tier market," the report said. "The rapid lease-up of the 1.2 million-square-foot Texas Tower, achieving 99% occupancy within three years, exemplifies this trend."
The positive trend also reduced the vacancy rate by 60 basis points from the previous three months to 26.8 percent.
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