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Market Report

Houston Office Market Report

4Q 2022

Energy Corridor-Adjacent Areas and North Suburbs
Are a Beacon of Optimism During Market Pressure

Katy Freeway and Interstate 45 areas emerge as bright spots. Of the 29 Houston office submarkets with at least 1 million square feet of inventory, vacancy declines were recorded in 11 over the past year ending in June. This grouping included several submarkets on the west and far north portions of the metro, as firms continue to covet space beyond the Beltway. The Katy Freeway area encompassing the Energy Corridor, as well as the neighboring Katy-Grand Parkway West and FM 1960 submarkets, all recorded annual vacancy drops over the past four quarters. A resurgence in oil prices aided these locales, with new leases signed in the area by Baker Hughes, BW Energy and Enbridge Inc. so far in 2022. Fast-growing northern suburbs along I-45, including Conroe and the Woodlands, also registered lower office availability relative to one year ago. Construction and engineering firms are most active in the leasing market here, aligning with the slew of commercial projects underway in these areas.
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