Houston’s significant space availability means that landlords must continue to offer free rent and concessions to attract tenants.

A return to positive net absorption and positive rent growth in 2018 were very welcome signs. Houston is also seeing the office vacancy rate compress lower from an early 2018 peak of nearly 17% thanks to a limited supply pipeline and steady tenant demand, though it’s still among the highest vacancies in large U.S. metros.

Houston’s significant space availability means that landlords must continue to offer free rent and concessions to attract tenants. And as tenants continue to absorb the large wave of new supply that delivered over the past several years, rent growth remains quite low by historical standards.

2019 - Houston 2019 Q2 Office Market Report