Houston sees signs of economic and social recovery, yet office market softness prevails

With more of the Texas population fully vaccinated and organizations returning to the office, the Houston office market is again seeing some signs of life. As of June 2021, the Centers for Disease Control and Prevention (CDC) COVID-19 data tracker shows that more than half of vaccine-eligible populations have now been fully vaccinated nationwide. Leasing activity picked up some but remains well below pre-pandemic levels. This quarter, leasing volume topped 2.0 million square feet (msf), up some from last quarter, but still down 28% compared to the pre-pandemic five-year average of 2.8 msf and large transactions are few and far between. In the Woodlands, Linde PLC renewed its existing space at 1585 Sawdust Road for 120,454 square feet (sf) and UT Physicians took 65,000 sf at 6500 West Loop South in the Bellaire submarket.

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