Houston’s office market continues to present a mix of challenges and opportunities in Q2 2026, with a 19.7% vacancy rate creating ample options and negotiating leverage for tenants, while average market rents of $30.27 per square foot increased a modest 0.7% year over year. Despite elevated vacancy, the market recorded approximately 457,000 square feet of positive absorption, signaling continued leasing activity, while a relatively limited 1.1 million square feet under construction should help restrain additional supply. For investors, transaction activity remains subdued, with 12-month sales volume declining 13.6% and market cap rates averaging 9.5%, potentially creating attractive acquisition opportunities for buyers willing to navigate current leasing and capital-market conditions. Houston’s underlying economic and demographic fundamentals remain a positive influence, with 1.1% job growth and 1.6% population growth, both exceeding national rates of 0.2% and 0.5%, respectively. Overall, Houston offers tenants a favorable environment for securing quality space while providing investors with opportunities to acquire office assets at potentially compelling yields as the market works through its elevated vacancy.