The Houston CRE Market at a Glance
CBRE reported 320,000 square feet of net absorption in the Houston office market in Q2 2026. Its research also found a wide gap by building quality: vacancy was 11.7% for Trophy and Class A+ space, compared with 24.9% for Class B space. Those categories describe CBRE's surveyed inventory, not the prospects for every Houston office building.
CBRE's Houston industrial survey reported approximately 7 million square feet of net absorption in Q2 2026 and 6.7% vacancy. About 5.8 million square feet was delivered during the quarter. The office and industrial surveys measure different properties; a metro figure cannot establish demand or available loan proceeds for a particular building.
For a Houston borrower, the property's leases, tenant credit, expenses, condition, location, and insurance costs matter more than a metro average. A medical office refinance needs a review of practice or tenant occupancy. An industrial acquisition needs a realistic view of competing space and lease up costs. Depending on the location, flood exposure and the availability and cost of coverage also affect underwriting. These market figures come from CBRE, not CapitalAx deal flow.
Houston Market Stats at a Glance
Published market research for Houston, Q2 2026. Check each source's coverage and methodology before applying a metro figure to a property.
Trophy and Class A+ office vacancy
11.7%
CBRE, Houston office survey, Q2 2026.
Class B office vacancy
24.9%
CBRE, Houston office survey, Q2 2026.
Office net absorption
320,000 sq. ft.
CBRE, approximately, Q2 2026.
Industrial vacancy
6.7%
CBRE, Houston industrial survey, Q2 2026.
Industrial net absorption
About 7M sq. ft.
CBRE, Q2 2026.
Industrial deliveries
5.8M sq. ft.
CBRE, Q2 2026.
Sources and methodology
Figures are attributed to the research firms above, not CapitalAx transaction data. Their office and industrial surveys cover different property types and should not be compared directly. CapitalAx's financing analysis is separate from those firms' findings.
What Fuels Houston's Capital Demand
Local industries and infrastructure that can influence demand for different property types.
Energy and Manufacturing
Energy and manufacturing users need different kinds of office, industrial, and specialized space. Their presence does not establish demand for a specific property.
Texas Medical Center
Medical practices and health systems can support demand for clinical space. Lenders still evaluate each property's use, leases, operating history, and tenant credit.
Port Houston
Port activity is relevant to logistics properties. Building specifications, transport access, and actual tenant commitments matter more than a broad port demand claim.
Land Use and Redevelopment
Houston does not have conventional zoning, but deed restrictions, development rules, permits, and flood regulations still affect whether a proposed use is feasible.
Housing and Services
Residential growth can affect multifamily and neighborhood retail demand. Check local occupancy and competing projects rather than relying on metro trends alone.
Ship Channel Industry
Industrial and petrochemical businesses use facilities around the Ship Channel, but a lender evaluates each site's operations, environmental concerns, and flood exposure.
Property Types and Financing Considerations
How financing needs differ by property type across the Houston metro.
Industrial Financing
Industrial lenders review tenant commitments, building specifications, competing supply, and lease up risk alongside CBRE's broader Houston figures.
Learn MoreMedical Office Building Financing
Medical office underwriting depends on actual occupancy, tenant or practice finances, lease terms, and the building's suitability for clinical uses.
Learn MoreMultifamily Financing
Apartment financing depends on actual occupancy, concessions, operating expenses, and nearby competing units.
Learn MoreMixed Use Financing
For infill or adaptive reuse, confirm permitted use, deed restrictions, flood and insurance exposure, construction costs, and separate income assumptions.
Learn MoreOffice Building Financing
CBRE's gap between premium and Class B vacancy makes building level leasing, tenant improvements, and realistic refinance proceeds especially important.
Learn MoreRetail Financing
Retail lenders review the rent roll, anchor tenants, lease expirations, and local customer base rather than a metro wide demand claim.
Learn MoreWhy Houston Borrowers Come to CapitalAx
Why borrowers and investors in Houston seek commercial financing and how CapitalAx structures solutions for each scenario.
Industrial Development
A warehouse project needs a supportable construction budget, tenant or lease up plan, site review, and a plausible path to permanent financing.
Medical Practice Ownership
An eligible practice buying its own space can compare conventional loans with SBA programs after reviewing occupancy and business requirements.
Redevelopment and Adaptive Reuse
Before seeking bridge capital, confirm development rules, deed restrictions, flood considerations, renovation costs, and the intended exit.
Multifamily Lease Up
A newly delivered community may need reserves and financing that reflect its actual occupancy and the time needed to stabilize.
Owner Occupied Business Property
An eligible business buying its own space can compare conventional financing with SBA options based on property use and business performance.
Loan Programs That Move Houston Deals
These are the lending programs most frequently matched to deals in the Houston market through our 350+ lender network.
Bridge Loans
Bridge capital may fit an acquisition, lease up, or renovation that cannot yet qualify for permanent financing. Review the cost and exit plan.
Learn MoreConstruction Loans
Construction financing depends on site review, permits, budget, sponsor capacity, and projected demand for the finished space.
Learn MoreSBA Loans
SBA 7(a) and 504 programs may fit eligible businesses buying owner occupied property.
Learn MoreCommercial Mortgage
Permanent financing for eligible stabilized Houston properties depends on property income, condition, borrower strength, and lender review.
Learn MoreDSCR Loans
DSCR investor loans evaluate property cash flow for qualifying rental investments.
Learn MoreCMBS Loans
CMBS financing may fit certain stabilized larger properties after reviewing tenancy, expenses, and transaction structure.
Learn MoreTools for Houston Investors
Commercial Mortgage and Loan Amortization Calculator
Calculate commercial mortgage payments, total interest, and a month by month loan amortization schedule.
Qualification Checker
Check which commercial loan programs you may qualify for based on your deal profile.
Deal Feasibility Analyzer
Analyze whether a commercial real estate deal pencils before you commit capital.
Loan Comparison Tool
Compare multiple loan scenarios side by side to find the best financing structure.
Other Texas Markets
Explore commercial real estate markets near Houston where CapitalAx arranges financing.
How Houston's Submarkets Shape Lending Decisions
An office property with Class B characteristics may face a different leasing outlook than a premium building. CBRE's Houston category vacancy rates cannot establish either property's rent, value, or available loan proceeds. Verify leases and request direct comparables before sizing the financing request.
For a property with vacant space, prepare a realistic lease up schedule, tenant improvement budget, operating reserves, and exit plan. A redevelopment proposal also needs a careful review of Houston development requirements, deed restrictions where applicable, site conditions, and insurance.
Different lenders evaluate the same deal through different program requirements and exposure limits. CapitalAx's role is to assemble the property information, assess program fit, and compare available options. None of the published market averages represents a financing commitment.