Steady Leasing Activity Balances Major Move-Outs in Houston Office Market

Despite a 10% increase in leasing activity, NRG’s exit from the CBD pushed Houston office absorption into the negative for Q1 2026.

By: AXL Media

Published: Apr 25, 2026, 11:18 AM EDT

Source: Bisnow

NRG Exit Impacts CBD Numbers

The primary driver behind this quarter's negative absorption was NRG vacating 479,000 SF at 910 Louisiana. This move was expected to significantly lower the building's occupancy to roughly 35%. Combined with smaller move-outs in Class-B properties, the vacancy rate remained steady at 27.7%.

Despite this, the broader context remains hopeful. Following a positive 2025—the market's first annual gain in occupancy since 2019—leasing volume reached 2.4 million SF in Q1, led by a resilient energy sector.

Energy Sector Drives Demand

Energy firms continue to be the backbone of Houston's office demand. Notable Q1 transactions included:

Boardwalk Pipeline: Leased 143,000 SF at 990 Town and Country Blvd.