What is the average Class A rent in Houston?

Around 35 USD/sqft/yr ($35 USD) across the broader Class A index. Trophy submarkets like Downtown command 20–40% above that.

How many months of rent-free are normal in Houston?

18 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Houston?

The Houston Class A market is currently softening. Vacancy is 26.7%, which sets the negotiating context.

Headline Class A rent in Houston is around 35 USD/sqft/yr ($35 USD), with 18 months of typical rent-free on a 10-year term.

Headline Class A rent: 35 USD/sqft/yr ($35 USD).
Trophy submarket rents (Downtown) push to roughly $52/sqft/yr.
Typical concessions on a 10-year deal: 18 months free rent.
Vacancy stands at 26.7% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Houston Class A office rents and incentives

Headline Class A rent in Houston is around 35 USD/sqft/yr ($35 USD), with 18 months of typical rent-free on a 10-year term.

TL;DR

Headline Class A rent: 35 USD/sqft/yr ($35 USD).
Trophy submarket rents (Downtown) push to roughly $52/sqft/yr.
Typical concessions on a 10-year deal: 18 months free rent.
Vacancy stands at 26.7% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Houston are quoted in USD per sqft per year. Across the broad Class A index the figure is 35, but the trophy tier in Downtown reaches roughly $52/sqft/yr. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Houston concessions on a 10-year Class A lease run to 18 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75% on margin. Elevated property tax burden — model carefully.

Where rents land by submarket

Downtown sits at the top end (~$52/sqft/yr). Galleria / Uptown clears around $38/sqft/yr as the prime tier. Energy Corridor represents the value end at ~$26/sqft/yr. The full submarket map is on the Houston city page.

Key facts

city	Houston
country	United States
region	Americas
classARentLocal	35 USD/sqft/yr
classARentUsd	$35/sqft/yr
vacancy	26.7%
typicalLeaseYears	10
typicalRentFreeMonths	18
submarkets	5
primeYieldPct	7.6%
trophyRent	$52/sqft/yr
primeRent	$38/sqft/yr

Frequently asked questions

What is the average Class A rent in Houston?: Around 35 USD/sqft/yr ($35 USD) across the broader Class A index. Trophy submarkets like Downtown command 20–40% above that.
How many months of rent-free are normal in Houston?: 18 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Houston?: The Houston Class A market is currently softening. Vacancy is 26.7%, which sets the negotiating context.

Editorial provenance

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

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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