Modified-gross structures with operating-expense pass-throughs.

  • Typical lease length: 10 years.
  • Typical rent-free: 18 months.
  • Vacancy: 26.7%; trend softening.
  • Modified-gross structures with operating-expense pass-throughs.

Houston office lease norms

Modified-gross structures with operating-expense pass-throughs.

TL;DR

  • Typical lease length: 10 years.
  • Typical rent-free: 18 months.
  • Vacancy: 26.7%; trend softening.
  • Modified-gross structures with operating-expense pass-throughs.

Structure

Modified-gross structures with operating-expense pass-throughs. 10-15 year terms common for trophy energy tenants. Free rent of 16-24 months and TI of $80-$140/sqft typical. Heavy concession packages.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

cityHouston
countryUnited States
regionAmericas
classARentLocal35 USD/sqft/yr
classARentUsd$35/sqft/yr
vacancy26.7%
typicalLeaseYears10
typicalRentFreeMonths18
submarkets5
primeYieldPct7.6%

Frequently asked questions

What's a typical lease term in Houston?
10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in Houston?
In USD/sqft/year. We also publish a USD-normalised view ($35/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

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