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Houston leasing activity stabilizes as flight to quality drives demand
Leasing activity in Houston reached 2.5 million square feet (msf) in Q1 2026, up from 1.7 msf one year ago and in line with the five-year quarterly average, signaling early signs of stabilization. The top transaction of the quarter was Boardwalk Pipelines’ 143,253-squarefoot (sf) lease at 990 Town and Country Boulevard in the Katy Freeway/Energy Corridor submarket. The submarket accounted for 25.0% of quarterly leasing volume and continues to emerge as a key demand node. Tenant preferences remain firmly skewed toward higher-quality assets, with 71.8% of leasing occurring in Class A buildings and all transactions above 20,000 sf concentrated in prime space.