D OWNTOWN
Mid-Year Market Report
20 26 downtownhouston.org
Q1 + Q2 2026
Advertisement or Photo 8.5x11” + .125” bleed
Cool + Connected Corridors Texas Avenue
D OWNTOWN
Mid-Year Market Report Main Street Promenade Grand Opening
Contents 4
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CEO Letter + Highlights Development Map Office Private Development Public Realm
Mid-Year 2026 18
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Retail Major Events How We Can Support Data Appendix About Downtown Houston+
Table of Contents
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Letter from our CEO
At the midpoint of 2026, Downtown Houston’s market performance reflects a district that is not simply recovering. It is adapting, reinvesting and building greater momentum across each of the critical pillars that drive the Downtown economy. During the first half of the year, Downtown welcomed
companies competing for talent, strengthening culture and positioning themselves for long-term growth. Downtown’s residential market is also absorbing recently completed inventory. Vacancy across the district fell to 10.3%, its lowest level since the end of 2019, while the conversion of the 1021 Main building will introduce
19.9 million non-employee visits from 7 million unique
460 apartments and 93 corporate suites. Together, these
visitors, representing year-over-year increases in both
indicators point to sustained demand for a more complete
overall activity and the number of people choosing to
Downtown neighborhood where people can live, work and
spend time in the district. That momentum continued in
participate in the city’s cultural and civic life.
the second quarter as Downtown became a key activity center for hosting the 2026 FIFA Men’s World Cup. During that period, Downtown recorded 10 million visits and 4.4 million unique visitors. This level of visitation reinforces Downtown’s enduring role as the region’s most concentrated center for business, hospitality, entertainment, civic activity and major events. On the supply side of visitation, hospitality continues
Perhaps the most important story of this quarter, however, is the scale of reinvestment reshaping Downtown’s existing assets. From historic properties such as 917 Franklin to landmark office towers like 910 Louisiana, building owners are modernizing interiors, improving amenities and strengthening connections to the public realm. Some of Downtown’s legacy hotels, such as the JW Marriott, plus activity generators such
to add both capacity and quality. Two hotel projects
the Toyota Center and GreenStreet are similarly being
delivered 332 new rooms this year, while an additional
refreshed to meet changing expectations and create
conversion got underway at the Scanlan building.
more reasons for people to stay, explore and return.
Meanwhile, the hulking new convention center expansion continues its build on the southeast side of Downtown. Propelled by large events such as the World Cup and major conventions, average daily rates and hotel revenue are also rising, reflecting the strength of Downtown’s visitor economy and its ability to compete for regional, national and global audiences.
This next cycle of Downtown development is being defined as much by thoughtful reinvestment as by new construction. By adapting older buildings, adding housing and hotel capacity, improving street-level amenities and connecting private investment to a more welcoming public realm, Downtown is becoming more resilient, competitive and relevant to the future of Houston.
The underlying office market indicators are equally encouraging. Office tenants signed 54 leases totaling 918,000 square feet during the first half of the year, including significant expansions by Crescent Energy and Mitsubishi Corporation (Americas), as well as longterm renewals by Porter Hedges and Mayer Brown. These decisions demonstrate that well-located, highly
Kristopher Larson, AICP, LPM President & CEO
amenitized office environments remain essential to
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CEO Letter
Downtown Mid-Year Market Report
Highlights
Total non-employee visits to Downtown Houston, 1H 2026
Unique non-employee visitors to Downtown Houston, 1H 2026
Average non-employee daily visits to Downtown Houston, 1H 2026
Office activity recovery rate, 1H 2026 vs 1H 2019
Office leasing activity, 1H 2026
METRO Park & Ride Rides (Q3 2025 – Q2 2026)
Q1 + Q2 2026
19.9M 1.2 7.0M 2.8 110K 81% 1.5 918K 4.6M 20.0
YoY
%
YoY
%
YoY
%
YoY
%
Highlights
5
Development Map
Scanlan Building 1
Hospitality
2027
Status
Under Construction
-
Developer
SLTX Capital
Rentable Area Number of Rooms
Address
405 Main Street
Number of Stories
Public Realm
Retail
Estimated Delivery
2026
Status
Under Construction
187,000 SF
140
Developer
Downtown Redevelopment Authority
Gross Area Number of Rooms
11
Address
400 Rusk Street
Number of Stories
-
-
Buffalo Bayou Greenway Connector
Hospitality
Status
Under Construction
500,000 SF
Developer
Houston First Corporation
Rentable Area Number of Rooms
Type
Public Realm
Estimated Delivery
2026
Status
Under Construction
-
-
Developer
Houston Parks Board
Rentable Area Number of Rooms
Address
1420 Chenevert Street
Number of Stories
-
Address
-
Number of Stories
-
-
8
Toyota Center Upgrades 3
Office
Public Realm
Estimated Delivery
Type
Hospitality
Type
7
George R. Brown Convention Center Expansion 2
Mixed-Use
Tranquillity Park Estimated Delivery
Type
Residential
-
Remembrance Park
Type
Mixed-Use
Estimated Delivery
Status
Under Construction
Rentable Area
-
Type
Public Realm
Estimated Delivery
2029
Status
Proposed
Gross Area
Developer
Clutch City Sports & Entertainment
Number of Rooms
253,000 SF
-
Developer
Harris County Precinct 1
Number of Rooms
Address
1510 Polk Street
-
Number of Stories
-
Address
1115 Congress Street
Number of Stories
-
Fall 2027
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1021 Main 4
Type
Mixed-Use
Estimated Delivery
Q4 2027
Status
Proposed
Rentable Area
780,530 SF
Developer
3L Real Estate
Number of Rooms
553
Address
1021 Main Street
Number of Stories
29
Houston Astros Entertainment District 5
Type
Mixed-Use
Estimated Delivery
-
Status
Proposed
Rentable Area
60,000 SF
Developer
Crane Capital Group
Number of Rooms
300
Address
-
Number of Stories
17
910 Louisiana Upgrades 6
Type
Office
Estimated Delivery
2027
Status
Under Construction
-
Developer
Hines
Rentable Area Number of Rooms
Address
910 Louisiana Street
Number of Stories
-
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Home2 Suites & Tru by Hilton
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J.W. Marriot Expansion
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Main Street Promenade
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Cool + Connected Corridors: Texas Ave
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Holiday Inn Express & Staybridge Suites
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Ely at the Ballpark
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Downtown Overlay Project
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Market Square Park: Petite Lucie
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Development Updates
Downtown Mid-Year Market Report
WHIT
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ALO
B AY
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13 69
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17 1 45
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BRAZOS
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Office Office Demand is Evolving—and Quality Matters More Downtown’s office market is moving into a more defined cycle. Central Houston’s 42nd Office Story, which tracks Downtown office conditions across more than four decades, shows a market still working through elevated availability and uneven demand. But it also points to improving signals: marketed space is tightening, sublease pressure is easing and new leasing is picking up.
Read the Office Story by scanning the QR code or visiting dthplus.org/officestory26
The takeaway is clear: demand is more selective, and quality is leading the market.
Long-View Perspective
Newer Class A is Performing
Office Story helps separate short-term disruption
Class A space delivered since 2001 totals
from longer market patterns. Downtown has
approximately 10.2 million square feet and is
moved through multiple cycles before, and
more than 86% occupied.
today’s story is one of active repositioning— solidifying its role as one of Houston’s most important long-term business districts.
Quality is Creating Separation Well-capitalized, well-located and wellamenitized buildings are better positioned, while older or less differentiated assets face more pressure. The strongest Downtown opportunities are tied to buildings that meet modern tenant expectations, including what’s outside the lobby.
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Development Updates
Newer, higher-quality Downtown office product continues to demonstrate strength.
District Experience Matters Tenants are looking beyond the building. Public realm investment, walkability, hospitality, dining, entertainment and nearby destinations are increasingly part of the office value proposition. Downtown’s best office story connects quality buildings with a stronger surrounding district experience.
Downtown Mid-Year Market Report
The Workplace Decision is Now a District Decision Tenants are choosing more than office space. They are evaluating how a location supports employees, clients, recruits, leadership and brand identity. That gives Downtown a distinct advantage. The density of business, civic life, hospitality and dining, transit and entertainment creates a workplace setting built for connection.
Business Concentration Is Key
The District Supports the Workday
Downtown remains a center for finance,
Restaurants, hotels, parks, public spaces,
insurance, real estate, energy, legal, professional
transit and major destinations all help shape the
services and civic institutions.
employee and client experience.
Downtown gives companies proximity to the
A Downtown address offers more than workplace
clients, partners, peers and decision-makers that
access; it offers a full business environment.
shape business.
Co-Location Creates Value
Leases Show Confidence Recent leases and expansions show that tenants
Companies benefit from being near related
continue to choose Downtown when the building,
industries, major employers, courts, civic
location and surrounding experience align.
Downtown supports the everyday interactions that help business move faster.
Q1 + Q2 2026
NEW LEASES
institutions, and professional networks.
• Mitsubishi Corporation moved and expanded to 92K SF at 1100 Louisiana • Crescent Energy expanded to 132K SF at Chase Tower • Latham & Watkins expanded to 103K SF at 811 Main • Yetter Coleman moved and expanded to 44K SF at Chase Tower
Development Updates
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Private Development
Reinvestment is Reshaping the Core
Legacy assets are not static. Across Downtown, reinvestment is helping older buildings compete for modern tenants by pairing building upgrades with stronger public realm connections. Across Downtown, owners and developers are refreshing legacy assets, rethinking underused space, and positioning buildings for a market that values quality, flexibility, access and experience. This next cycle of Downtown development is about reinvestment just as much as it is new construction: modernizing historic buildings, converting obsolete office space, improving amenities, and reconnecting properties to the public realm around them.
917 Franklin
1021 Main
910 Louisiana
NewForm Real Estate
3L Real Estate
Hines, Partners Real Estate, Gensler, HOK
One of Downtown’s most historic office buildings is being restored for a new generation of tenants through upgraded interiors, refreshed building systems, and new street-level retail opportunities.
A former office tower is being repositioned for residential life and corporate flexibility, with plans for new housing and corporate suites in the heart of Downtown.
Located directly on the Main Street Promenade, 917 Franklin shows how historic character, modern tenant expectations, and pedestrian-focused investment can reinforce one another.
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Development Updates
Its Main Street location gives the project added importance, bringing potential new residents, visiting employees, and more consistent street-level activity to one of Downtown’s most important public realm corridors.
One of Houston’s iconic office towers is being reintroduced with upgraded tenant amenities, including conference, wellness, lounge, terrace and ground-level improvements. Positioned near the redeveloping Tranquillity Park, Hermann Square and the civic heart of Downtown, 910 Louisiana shows how landmark office assets can remain competitive by investing in both the building experience and the frontdoor public realm.
Downtown Mid-Year Market Report
Downtown’s Skyline Defines Houston
A strong Downtown bolsters the
When Downtown succeeds, that
entire Houston region.
success reaches beyond the core.
One of the region’s greatest assets, Downtown is a thriving central business district that helps Houston attract companies, talent,
It strengthens Houston’s brand, sharpens the region’s competitive advantage, and reinforces the city’s position on the world stage.
investment and global attention.
Fortune 500 Strength Home to 11 Fortune 500 headquarters, Downtown remains Houston’s most powerful concentration of corporate leadership.
Energy at Global Scale Downtown continues to anchor Houston’s global energy identity. Within the energy industry alone, Downtown has 35 main headquarters, nearly double that of any other Houston submarket. That concentration creates a powerful co-location advantage with established energy leaders, transition-focused companies, infrastructure firms, investors and advisors working near one another in the same urban core.
Q1 + Q2 2026
Development Updates
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Private Development
Hospitality Investment Amplifies Downtown’s Destination Role New investment in Downtown hotels is reinforcing the
Hospitality investment supports that demand while
district’s role as Houston’s front door.
sending a broader market signal: Downtown remains a
Across the first six months of 2026, Downtown averaged nearly 800,000 non-employee visits per week, reflecting
business district, visitor destination, event platform and increasingly mixed-use urban center.
a sustained draw for conventions, business travel, entertainment, major events and more.
New Rooms Build Destination Capacity New hotel keys also entered the market in 2026, like the Holiday Inn Express & Staybridge Suites, which provides a lift to Downtown’s ability to serve a wide range of travelers and visitors. That added capacity matters as Downtown welcomes more visitors and competes for larger moments on the regional, national and global stage.
Historic Hotels are Reinvesting Downtown’s historic and legacy hotels are being refreshed for a new era of visitors. Projects at properties such as the JW Marriott, Sam Houston Hotel, Cambria and Canopy by Hilton are bringing renewed energy to buildings that already help define Downtown’s character. These investments are especially meaningful along corridors like Main Street and Texas Avenue, where the Promenade and Cool Corridor initiative are improving walkability, shade, comfort and street-level connection for a more welcoming visitor experience.
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Development Updates
Street-Level Amenities Benefit Everyone Hospitality projects are showing how they can help fill everyday amenity gaps. Providing ground-floor retail, food and beverage, convenience offerings and urban grocery concepts will serve hotel guests while also supporting office workers and residents. These new amenities reinforce the streetscape improvements on Main Street and Texas Avenue, giving people more reason to walk, linger and return.
Downtown Mid-Year Market Report
More Reasons to Stay Downtown
Downtown’s entertainment assets are helping the district serve more audiences, more often. Investments for 2026 at Toyota Center and GreenStreet are reinforcing a key activity zone and showing how Downtown is extending the workday into dinner, games, concerts, client outings and weekend visits.
Toyota Center Opened in 2003, Toyota Center is being refreshed as one of Downtown’s major sports and entertainment anchors, supporting the district’s ability to
Q2 HIGHLIGHTS
host high-energy events and welcome regional visitors year-round.
• Renovations and upgrades to fan-facing spaces • New or improved premium, hospitality and gathering areas • Technology, seating, concourse, guest experience improvements
GreenStreet Since Rebee’s took over management in 2024, GreenStreet is being repositioned as a more active mixed-use destination, with leasing activity and amenity improvements that support office users, visitors and
Q2 HIGHLIGHTS
eventgoers.
Q1 + Q2 2026
• 20,000 SF of new tenant leasing activity • Amenity upgrades for workers and visitors • Proximity to Toyota Center, METRORail and Main Street Promenade
Development Updates
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Public Realm
Building a More Walkable Downtown, Block by Block
Downtown’s public realm strategy is becoming visible at street level. With Main Street Promenade complete and the first phase of Cool Corridors delivered on Texas Avenue, Downtown Houston+ is advancing a more connected pedestrian network guided by the Public Realm Action Plan. These projects are not isolated improvements. Together, they begin to shape a Downtown where the walk between offices, hotels, restaurants, transit, parks and civic destinations feels more comfortable, intuitive, and worth experiencing.
A Network, Not a One-Off Main Street Promenade serves as a civic spine through the heart of Downtown. It creates a more active, social and pedestrian-focused corridor while supporting restaurants, nightlife, historic buildings and nearby destinations. Cool Corridors extends that idea into the broader district. The first phase on Texas Avenue strengthens one of Downtown’s most traveled pedestrian routes, improving the connection between major destinations while testing tools that can be adapted elsewhere.
BY T H E N U M B E R S
Together, these investments point to a larger goal: a Downtown where walkability is not limited to a few standout blocks, but becomes part of the district’s everyday infrastructure.
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Comfort You Can Measure In Houston, walkability depends on comfort. Shade, lighting, planting and better pedestrian space are not cosmetic upgrades; they influence how people move, how long they stay, and whether they choose to return. Early Cool Corridors readings are starting to show the impact. Surface temperatures under shade structures are averaging 10 degrees lower, with reductions up to 30 degrees in some locations. Nighttime illumination is now two to six times greater than previous conditions. That data matters because it turns public realm investment into something brokers, owners, tenants and partners can understand: a measurable improvement in the Downtown experience.
111
30ºF
2-6x
28
Trees Planted
Max Temperature Reduction
Increase in Illumination
Blocks Impacted
Development Updates
Downtown Mid-Year Market Report
All Roads Lead to Downtown Downtown’s access story is broader than any single commute pattern. As Houston’s transit core and central business district, Downtown sits at the center of a regional network that connects workers, residents, visitors and business travelers from across Greater Houston and beyond.
Whether someone is arriving from a nearby neighborhood, a suburban park-and-ride facility, a regional airport or a major highway, Downtown offers multiple ways in—and multiple ways to move once you arrive.
TRAVELER TYPE
GETTING DOWNTOWN
WHY IT MATTERS
Regional Commuters
Park & Ride service through METRO, Fort Bend Transit and The Woodlands Express
Direct commuter access from across Greater Houston
Local Riders
METRORail, bus routes, transit centers and METRO microtransit
Everyday movement into and around the district
Bike & Trail Users
Bayou trails, bike lanes and bike-friendly transit connections
Connections to nearby neighborhoods including the Heights, East End, Montrose, and more
Business and Visitor Travel
Airport connections, including express bus service to IAH and Hobby
Access for clients, convention attendees and global business travelers
Drivers
Garages, surface lots, street parking and multiple highway approaches
Flexible access for employees, visitors and eventgoers
Last-mile movement
Walkable streets, transit stops, bike access and on-demand mobility options
Easier connections between offices, hotels, restaurants, parks and destinations
Mobility by the Numbers • METRO serves more than 1,300 square miles with 21 transit centers and 28 Park & Ride facilities. • The METRORail system includes 23 miles of service connecting Downtown to major destinations. • Park & Ride ridership across METRO, Fort Bend Transit and The Woodlands Transit totaled 4.3M riders in 2025. • Downtown offers roughly 100,000 parking spaces across garages, surface lots and street parking. • More than a dozen approach routes connect the district to the highway system that surrounds the urban core.
Downtown’s Access Advantage Downtown’s mobility network supports more than the daily commute. It expands access to talent, helps clients and partners reach the district, supports conventions and major events, and gives companies a business address with reach well beyond the Houston region.
Q1 + Q2 2026
Development Updates
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Public Realm Remembrance Park
Civic Spaces Shape Market Perception Civic spaces are an integral part of Downtown’s market story. Parks, plazas, memorials and gathering places shape first impressions and influence whether Downtown feels
Bordering the courthouse district and Buffalo Bayou, Remembrance Park is planned as a place for reflection, learning and gathering. Led by Harris County Precinct 1, the 5.8-acre project will transform multiple blocks into a multi-sensory space honoring African American history, memory and the ongoing pursuit of freedom and justice.
the shared spaces where civic life happens. Major investments are advancing across Downtown through partnerships among city, county, civic and
KEY MOVES
active, welcoming, memorable and cared for—creating • Three connected city blocks shaped by art, native landscaping, shade and gathering areas. • A stronger link between civic memory, Buffalo Bayou and Downtown’s walkable public realm.
public-sector entities, collectively reinforcing Downtown as a place people want to gather, explore, and return to.
Tranquillity Park
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On Downtown’s east side, the George R. Brown Convention Center anchors Houston’s convention and business gathering economy. The transformation now underway will expand and modernize one of the city’s most important civic assets.
• New decking, repaired pavers, refreshed hardscape and updated lighting. • Select perimeter wall reductions to improve sightlines and visibility into the park.
Development Updates
• GRB Houston South, a new 700,000 SF convention building slated for 2028. KEY MOVES
KEY MOVES
Next to City Hall, Tranquillity Park is entering a new chapter with upgrades that reconnect the park to the seat of city government, the Theater District, and its legacy as a space commemorating the moon landing.
George R. Brown Convention Center
• Two exhibition halls, a multipurpose hall, 225,000 SF of contiguous exhibit space, ground-level retail and dining, and a central atrium. • A new 100,000 SF pedestrian plaza connecting the convention center area toward Toyota Center.
Downtown Mid-Year Market Report
A Cleaner, Safer, More Welcoming Downtown is Foundational Stewardship is a market priority. A successful Downtown depends on public spaces that feel clean, safe, welcoming and well managed every day. Perception matters, and so do the daily conditions that shape how tenants, employees, residents, visitors and clients experience the district. Downtown Houston+ helps coordinate public, private and civic partners around that work. Through one of the country’s most robust Ambassador networks, dedicated operations teams and on-theground safety resources, Downtown’s public realm is actively managed at a scale unmatched by any other local district.
Who to Call for Support Downtown Public Safety Guides For directions, safety escorts, general information and visible street-level hospitality Downtown Cleaning Ambassadors For litter removal, pressure washing and graffiti response Quality of Life Response Team For humane, trained engagement with people experiencing homelessness or quality-of-life concerns, with connections to outreach and health resources
SEAL Security For support related to aggressive panhandling, trespassing, public intoxication, noise concerns and other security issues District Operations For trash program questions, landscaping or irrigation concerns, street light outages and broader maintenance coordination.
713-223-2003 For clean and safe service requests, stakeholder support and help connecting to the right Downtown team, call the Downtown Service Hotline.
Q1 + Q2 2026
Development Updates
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Retail
New Openings New names, new flavors, new reasons to be Downtown. From fast-casual stops to destination dining and nightlife, Downtown’s latest openings are expanding the district’s amenity mix for workers, residents, visitors, eventgoers and clients.
Petite Lucie
Market Square Park
El Tiempo Cantina
POST Houston
All-day French-inspired café, bakery and garden bar from Chef Omar Pereney
Classic Houston Tex-Mex joins a global lineup of culinary faves at POST
Concrete Rose
Layne’s Chicken
1701 Commerce
609 Main Street
Modern and stylish cocktail bar that celebrates Chicano culture
College Station chicken chain lands in central Downtown
Dean’s Downtown
Distrito Federal
316 Main Street
114 Main Street
Historic Promenade bar reopened with lush interior renovations
Mexico-forward Latin bar and nightclub on the Promenade
Spindletop
Bad Chx
Hyatt Regency
Elegant revolving rooftop bar spins again among the Downtown skyline
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Development Updates
223 Main Street
Savory fried chicken hot spot now open on the Main Street Promenade
Downtown Mid-Year Market Report
A Dining Scene with Growing Recognition Downtown’s dining scene continues to expand and earn attention. James Beard nominations, Michelin Bib Gourmands, international certifications and one of the continent’s best bars offer concrete proof points for Downtown’s destination appeal.
Chef Ope Amosu of ChòpnBlok •
James Beard Finalist
Chef Ope Amosu earned his second James Beard nomination for Best Chef in Texas, bringing bold West African cuisine to POST Houston, one of Downtown’s most visible visitor destinations.
Hugo Ortega & Tracy Vaught
James Beard Finalist
Collectively known as the H-Town Restaurant Group, this pair earned James Beard recognition for Outstanding Restaurateur, highlighting their culinary leadership behind destinations like Xochi and Zaranda, bringing flavors from Mexican and the Americas to the heart of the convention district.
Thai Café
Thai Select Award
The longtime Thai eatery on Franklin brings certified authentic cuisine to Downtown, with Thai Select recognition from Thailand’s Ministry of Commerce—the only Thai restaurant in Houston to earn this award.
Papalo Taqueria at The Finn
Michelin Bib Gourmand
Papalo’s distinctive approach to Mexican and pre-Columbian flavors earned a Bib Gourmand with standout tacos that have also landed them a spot on Texas Monthly’s Top 50 Tacos of Texas list.
Theodore Rex
Michelin Bib Gourmand
For the past ten years, Chef Justin Yu has offered this relaxed fine dining experience at an intimate spot in the Warehouse District.
Bandista
North America’s 50 Best Bars
Hidden inside Four Seasons Hotel Houston, Bandista offers an acclaimed cocktail destination in a 1920s-inspired lounge with a decadent Latin vibe.
Q1 + Q2 2026
Development Updates
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Major Events
Where Houston Comes Together for Major Moments Downtown stands apart for its ability to host overlapping, high-capacity events while keeping the district moving. From World Cup activity and Astros games to CERAWeek, the World Baseball Classic, Rodeo season and daily business, Downtown brings together transit, parking, hotels and public spaces at an unmatched scale.
March 13 - 14 • World Baseball Classic Quarterfinals at Daikin Park • 65th Annual St. Patrick’s Parade • Katt Williams at Toyota Center
March 6 - 8 • World Baseball Classic at Daikin Park
February 27 - March 1 • Go Texan Day • Rodeo Parade • Rodeo Run • NCA All-Star National Championship
February 14 • Valentine’s Day
350k
• Lunar New Year Festival at Market Square Park • Los Bukis at Daikin Park
300k
• Fantasia & Anthony Hamilton at Toyota Center
250k 200k 150k 100k
AVERAGE DAILY VISITATION (109k)
50k 0
JAN 20
Events
FEB
MAR Downtown Mid-Year Market Report
SOURCE: PLACER.AI
May 16 - 17 • Houston Astros vs. Texas Rangers at Daikin Park • Texas Black Expo Youth Entrepreneurs Exposition at George R. Brown Convention Center
May 2 • FIRST Robotics Championship at George R. Brown Convention Center
April 24 - 25 • Houston Astros vs. New York Yankees at Daikin Park • Houston Rockets vs. Los Angeles Lakers Playoffs at Toyota Center
More Audiences, More Often Downtown’s event calendar is defined by range as much as scale. Celebrations like Lunar New Year, Art Car Parade, Fleet Week, Good Times on Main, cheer and robotics competitions brought diverse communities into the district, reinforcing Downtown as a place for residents, workers, visitors, families, artists, fans and business leaders.
June 16 - 17 • FIFA Group Stage: Netherlands vs Sweden at Houston Stadium • Houston Astros vs. Cleveland Guardians at Daikin Park • A$AP Rocky at Toyota Center
March 26 - 29 • Houston Astros vs. Los Angeles Angels Home Opener at Daikin Park
June 6
• March Madness Sweet 16 at Toyota Center
• Houston Astros vs. Oakland Athletics at Daikin Park
• March Madness Elite Eight at Toyota Center • Houston Cougar Basketball Watch Party at Avenida Houston • Bayou City Art Festival at Sam Houston Park • Night Light 2026 at Allen’s Landing
APR Q1 + Q2 2026
MAY
JUN Events
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How We Can Support A Clearer Source of Truth for Downtown Current, usable information is necessary to make confident decisions about Downtown. Downtown Houston+ offers market intelligence tools that make district data easier to access, understand and share. Our Economic Dashboard, launched in early 2026, brings locally sourced data into one place, offering a clearer view of the office, retail, residential, hospitality and visitation trends shaping Downtown. Designed to go beyond restating market metrics, the dashboard pairs trusted third-party sources with local insight and primary data, helping users understand not
IN THE DASHBOARD
only what is changing, but why it matters.
Visitor & Workforce Trends
Pedestrian activity, visitation patterns, and office dynamics
Leasing & Housing Activity
Residential growth, office performance, and flight-to-quality indicators
Retail & Hospitality Expansion
New openings, hotel activity, and street-level market signals
Major Infrastructure Milestones
Updates on Main Street Promenade, Cool Corridors, and other public realm investments
Visit the Economic Dashboard at dthplus.org/datadashboard
Need a report or market context? Contact Brendan
Beyond our core digital tools, our research and economic development team can help partners develop custom reports tailored to your strategic needs.
Harrison, Research Manager, at brendan.harrison@downtownhouston.org
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Support
Downtown Mid-Year Market Report
Helping Brokers Tell the Downtown Story Downtown Houston in 2026 is not the same market it was in 2019. The district has added hotels, public realm investments, restaurants, entertainment options and new urban experiences that matter to tenants, employees and decision-makers. But those changes only create value if the full story reaches the people making decisions. Downtown Houston+ works with brokers, partners and organizations like the Greater Houston Partnership to help communicate that story clearly. From construction updates and commute context to parks, happy hours, client amenities and project momentum, we help connect Downtown’s buildings to the district around them. Planning a client tour? Need project contex† or imagery? Want a clearer narrative for a tenant conversation? We can help turn Downtown’s complexity into a current, credible and compelling market story.
We Are Here to Help Request a Downtown tour Tailored itineraries and expert-led site visits that showcase the district’s strongest assets Access project information and imagery Context, renderings and visual assets for client presentations
Connect with peer voices Introductions to industry peers, tenants and partners who can share authentic Downtown success stories Build stronger client messaging Support translating Downtown’s investments, amenities and market shifts into clear talking points
For this support and more, contact Cassie Hoeprich, Vice President of Planning & Economic Development, at cassie.hoeprich@downtownhouston.org
Q1 + Q2 2026
Support
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Convening the Partners Who Shape Downtown Central Houston, Inc. is the membership organization behind Downtown Houston+ and a driving force for the district’s long-term vision. For more than 40 years, CHI has brought together Houston’s influential leaders, major property owners,
CHI as a Connector and Problem Solver We work across property owners, brokers, tenants, public agencies, civic institutions and community stakeholders to move ideas into action and help address the district challenges that no single organization can solve alone.
civic partners and decision-makers to ensure Downtown’s role as the region’s economic and cultural core. Today, our network includes more than 250 leaders whose influence extends beyond Downtown and helps shape Houston’s broader economic future. Progress in Downtown depends on coordination across public, private and civic sectors. CHI helps bridge those
Join Our Network Help shape the future of Houston’s urban core. Join Central Houston, Inc. to connect with leaders and support the economic development, urban design, public realm and messaging work advancing Downtown.
conversations, identify barriers, elevate opportunities and align partners around the investments, policies and projects that support a stronger Downtown market.
Save the Date
24
Support
Office Sector Symposium • Thursday, September 17 • 8-9:30am at POST Houston Join us for the inaugural Downtown Houston Office Symposium, a new series convening today’s leaders for a real estate-focused discussion on Downtown as an office destination.”
Downtown Mid-Year Market Report
Tools to Support Deals, Tenants & Downtown Momentum Downtown Houston+ helps brokers, property owners and partners turn market momentum into real opportunities. Through strategic grants, market tools, convening tours, and targeted communications, we support projects that strengthen Downtown’s street-level experience, improve existing assets, attract tenants and deliver public benefit. These resources are designed to help move good ideas closer to implementation—whether that means activating a storefront, improving a building edge, supporting outdoor dining or advancing a larger development opportunity aligned with Downtown’s long-term vision.
Thrive Storefront Grants
Façade Improvement Grants
Matching grants of up to $50,000 for ground-level storefront improvements that support retail activity and street-level vibrancy.
Targeted funding of up to $250,000 through the Downtown Redevelopment Authority to help revitalize building exteriors within TIRZ #3 boundaries.
Alfresco Grants
TIRZ Agreements & Tax Reimbursements
Funding to activate outdoor spaces and sidewalk cafes, with up to $10,000 for non-permanent furnishings and an additional $5,000 for permanent fixtures such as awnings and lighting.
Strategic financial tools through TIRZ #3 for major development projects that align with Downtown’s core goals and provide measurable public benefit.
Get Connected Ready to explore resources for your next project or tenant opportunity? Reach out to the Economic Development team at marlon.connley@downtownhouston.org
Q1 + Q2 2026
Support
25
Data Appendix Tourism Hotel Inventory
Occupancy 9,509
10K 9K
90% 80%
8K
70%
7K
59.5%
60%
6K 50% 5K 40% 4K 30%
3K
20%
2K
10%
1K 0 2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026 YTD + UC
2026
2015
2025
2014
2023
2013
2024
0 2012
Revenue Per Available Room (RevPAR)
Average Daily Rate (ADR) $300
$269.28
$250
$250
$200 $160.22
$200 $150 $150 $100 $100
$50
$50
2026
2025
2023
Demand (Total Rooms)
2024
$0
2026
2025
2024
2023
$0
Revenue
250K
$70M
$60M 200K 172,788
150K
$50M
$46,528,826
$40M
$30M
100K
$20M 50K $10M
26
Data Appendix
2026
2025
2024
$0 2023
2026
2025
2024
2023
0
Downtown Mid-Year Market Report
Office Occupancy
Market Asking Rent ($/SF/Year)
Overall Occupancy
Overall Asking Rent
Class AA Occupancy
Class AA Asking Rent
95%
$55 90.2%
90% $50.22
$50
85% 80%
$45
74.6%
75% 70%
$40 $37.24
65% 60%
$35
55% 50%
$30 2021
2022
2023
2024
2025
Net Absorption (SF)
2026
2021
2022
2023
2024
2025
Employee Recovery
Overall Net Absorption
2026
Total Employee Recovery
Class AA Net Absorption
Individual Employee Recovery
500K
95% 90%
300K 85%
178,560
100K
94.9%
80% 76,191
75%
79.7%
-100K 70% -300K
65% 60%
-500K 55% -700K
50% 2021
2022
2023
2024
2025
2026
SF Leased
2021
2022
3.5M
300
3.0M
INVENTORY (SF)
OCCUPANCY
A
39,385,991
74.7%
> 2001 10,250,013
90.2%
< 1987 29,135,978
69.2%
B
11,926,645
72.4%
C
1,277,141
91.7%
Overall
52,589,777
74.6%
250
SF Leased
1.5M
100
1.0M 50 0.5M
Q1 + Q2 2026
2021
2022
2023
2024
2025
2026 YTD
Number of Leases
150
2.0M
2020
2025
CLASS
2.5M
2019
2024
2026
SF Leased Number of Leases
0
2023
0
Data Appendix
27
Residential
Residential Inventory & Vacancy
Units Vacancy Rate
9K
35%
8K 30% 7K 25% 6K
Units 4K
15%
3K 10% 2K
10.3%
5%
1K
0
0% 2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026 YTD
Residential Statistics Downtown
Greater Downtown
The Loop
Houston MSA
Existing Units
8,451
36,532
145,091
748,125
YoY
2.8%
3.9%
2.6%
2.2%
Under Construction Units
460
924
1,903
11,953
Monthly Avg Asking Rent
$2,269
$1,855
$1,799
$1,375
Asking Rent / SF
$2.33
$2.06
$2.00
$1.52
QoQ
0.2%
1.2%
1.1%
-0.1%
YoY
-1.6%
-0.6%
-0.5%
-1.1%
Vacancy Rate
10.3%
11.9%
10.7%
12.2%
QoQ
-2.6%
-2.4%
-1.4%
-0.4%
YoY
-0.7%
-2.3%
-0.6%
0.5%
Market Cap Rate
6.06%
6.59%
6.70%
6.73%
QoQ
-0.28%
-0.19%
-0.15%
0.00%
YoY
-0.19%
-0.09%
-0.03%
0.13%
28
Data Appendix
Downtown Mid-Year Market Report
Vacancy Rate
20%
5K
Retail Product Categories
Other Office 3% 3% Personal Services 5% Event Venues 6%
Retail Statistics
Stores & Shopping 12%
Professional Services 15%
Total Occupied Street-Level Storefronts
302
Total Available Street-Level Storefronts
80
Food & Beverage 56%
Transit METRO Park & Ride Activity
METRORail Activity
500K
1.6M 444,783
450K
422,441
1.4M
1,356,982
400K 366,958
1.2M
350K 919,285
1.0M
300K 250K
910,903
800K
200K
600K
150K 400K 100K 200K
50K 0
Q1 + Q2 2026
2026
2025
2024
2026
2025
2024
0
Data Appendix
29
About DTH+
Downtown Houston+ stewards the vision of Downtown as a center of global commerce and local culture and Houston’s heart for opportunity, excitement and joy. Downtown Houston+ represents a family of aligned entities – Central Houston, Inc., Houston
Downtown Management District and Downtown Redevelopment Authority – which
advance a shared mission to champion and enhance Downtown Houston as a connected and thriving place for everyone. For more information, visit downtownhouston.org.
Contributing Staff
District & TIRZ Boundaries
Brendan Harrison Manager, Research
Cassie Hoeprich Vice President, Planning & Economic Development
Justin Jerkins Senior Manager, Communications
Kristopher Larson President & CEO
Clint Self Manager, Creative Strategy
Ann Taylor Director, Public Affairs & Media Relations
Photography Credits
TIRZ #3
District Boundary
Bonfire Photo Michael Anthony Leonid Furmansky Maria Lysaker Egidio Narvaez Houston First Corporation NewForm Real Estate
Sources CoStar Downtown Houston+ METRO Placer.ai
30
About DTH+
Downtown Mid-Year Market Report
Our Boards of Directors Houston Downtown Management District (HDMD)
Central Houston, Inc. (CHI) & Central Houston Civic Improvement (CHCI)
OFFICER
NAME
TITLE / ORGANIZATION
Chair
Leslie Ashby
Attorney at Law, Ashby, LLP
OFFICER
NAME
TITLE / ORGANIZATION
Vice Chair
Robbi Jones
President, Kipling Jones & Co.
Chair
Stephanie Burritt
Co-Managing Partner, Principal, Gensler
Treasurer & Investment Officer
Richard Torres
President, CHRISTUS Foundation for Health Care
Vice Chair
Alex Jessett
CEO, Camden Property Trust
Secretary
Marian Harper
Vice President, Foundation Development, Community Affairs, Astros Foundation, Houston Astros
President
Kris Larson
President & CEO, Central Houston, Inc.
Director
Sean Alley
Director of Property Management, Brookfield Properties Operated by CBRE
Treasurer
Jonathan Edgeller
Managing Director & Region Manager, JP Morgan Chase & Co.
Secretary
Niloufar Molavi
Global Leader Oil & Gas, PwC
Assistant Secretary
Jamie Perkins
Executive Asst & Paralegal, Central Houston, Inc.
Director
Leah Casey
Senior Manager, Corporate Affairs, Chevron
Director
Priya Coffey
Managing Partner, Jackson Walker LLP
Director
Mark Evans
Co-Chairman, Bracewell
Director
Hong Ogle
Houston Market President, Bank of America
Director
Kathy Payton
President & CEO, Fifth Ward Community Redevelopment Auth
Director
Daron Peschel
Sr. Vice President In Charge, Federal Reserve Bank-Houston Branch
Director
David Stevenson
President, Amegy Bank Houston
Director
Michael Vinson
Tax Partner, KPMG LLP
Director
Jennifer Wagner
Partner, Office Director, Education Studio Leader, HKS Architects
Director
Ric Campo
Executive Chairman, Board of Trust Managers, Camden Property Trust
Director
Dilip Choudhuri
President & CEO, Walter P Moore
Director
Jamie Flatt
Director / Principal, Page
Director
Adam Green
Shareholder, Baker Donelson
Director
Hillary Hart
Executive Director, Theater Under the Stars
Director
Jeffery Hildebrand
Executive Chairman & Founder, Hilcorp Energy Co.
Director
Deanea LeFlore
Executive Director, OST/Almeda Corridors Redevelopment Auth
Director
Ira Mitzner
President & CEO, Marriott Marquis/RIDA Development Corp.
Director
John Mooz
Senior Managing Director, Hines
Director
David Staas
Shareholder, Winstead PC
Director
Gretchen Sheirr
President of Business Operations, Houston Rockets
Director
Aaron Thielhorn
Houston Market Leader, Trammell Crow
Director
Ryan Barbles
Managing Director, Stream
Director
Matt Damborsky
Executive Vice President, Skanska USA Commercial Development
Director
Michael Heckman
President & CEO, Houston First Corporation
Director
Tom Jasien
Interim President & CEO, METRO
Director
Joe Jett
Partner, Ernst & Young LLP
Director
David Anderson, III
Partner, Off the Record
Director
Matt Asvestas
Managing Director, Stream Realty
Director
Kinder Baumgardner
Managing Partner, SWA
Director
Genora Boykins
Sponsorship Counser, NRG Energy
Director
Clay Crawford
Attorney at Law, Sears Crawford L.L.P.
Director
Jacques D’Rovencourt
General Manager, Hilton Americas-Houston
Director
Marcus Davis
Owner, Kulture
Director
Kelly Foreman
Executive Vice President, Corp R/E & Facilities, Amegy Bank
Director
Irma Galvan
Owner, Irma's Original
Director
Stephen Hester
Senior Vice President, Centerpoint Energy
Director
C.C. Huang
Senior Advisor, CPC Corporation
Director
Angus Hughes
Senior Director, Cushman & Wakefield
Director
Antoinette Toni- Jackson
Principal, The Banks Law Firm
Director
Roland Kennedy
Manager, Internal Stakeholder Managers, Chevron Corporation
Director
Spencer Lightsey
Associate Director of Corproate & Foundation Relations, University of Houston-Downtown
Director
Sean Liu
General Counsel, Outpost
Director
Ben Llana
Vice President-Development, Skanska USA Commerical Development
Director
Tiger Lyon
Design Director, Gensler
Director
Nick Massad III
Senior Vice President, American Liberty Hospitality, Inc.
Director
Kenny Meyer
President, MC Management & Development, Inc.
Director
Anna Mod
Director, Ryan
Director
Edna Ramos
Downtown Property Owner,
Director
Frem Reggie
Managing Director, Hines
Director
Joey Sanchez
Founder & CEO, Cup of Joey
Director
Reggie Wilson
Partner, Norton Rose Fulbright
Downtown Redevelopment Authority (DRA)
Director
Steve Kean
President & CEO, Greater Houston Partnership
OFFICER
NAME
TITLE / ORGANIZATION
Director
Giles Kibbe
Executive Vice President & General Counsel, Houston Astros
Chair
Curtis Flowers
Executive Director, J.P. Morgan
Director
Steve Newton
Managing Director & Practice Leader, Russell Reynolds Associates
Secretary
Barry Mandel
President & Park Director, Discovery Green, Retired
Director
Jessica O'Neill
President of Business Operations, Houston Dynamo & Dash
Director
James B. Harrison
Principal, Harrison Kornberg Architects
Director
Ryan Walsh
CEO, Harris County-Houston Sports Authority
Director
Kirby Liu
Managing Director, Lovett Group
Director
Jason Wells
Chair of the Board, President & CEO, CenterPoint Energy
Director
Tiko Reynolds-Hausman
Chief of Staff of Operations, Harris County Precinct 2
Director
Melinda Yee
Houston Managing Partner, US M&A Services Leader, Deloitte
Director
Michael Ereti
Director, Development and Infrastructure, Harris County Precinct 1
Q1 + Q2 2026
About DTH+
31
downtownhouston.org
M O R E I N F O R M AT I O N + R E P O R T S