In the last three months, West Houston accounted for 50 percent of leasing activity in the local market.

After a sluggish start, the office leasing market is finally showing signs of recovery this year in an unlikely location: West Houston.

Instead of moving into the more typical downtown offices, companies have begun moving out west to areas with newer buildings like the Energy Corridor, Memorial City, and CityCentre. In the past three months, Houston saw an uptick in leasing activity of 16 percent in comparison to the last quarter of 2023, according to the latest report from industry research firm Savills. This increase stems from West Houston’s outperformance in the market, with the area accounting for 50 percent of the leasing activity in the overall Houston office market in the first quarter of 2024.

Savills attributes the new numbers to companies looking to relocate closer to their workforce. Four of the biggest transactions this quarter occurred in West Houston, including Noble Corporation leasing 110,000 square feet at CityWest Place, Fluor leasing 104,000 square feet at Two Eldridge, BMC Software leasing 77,200 square feet, Enstor leasing 43,000 square feet both at CityWest Place.

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