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For Texas Commercial Real Estate Investors

Q2 2026 Texas Office Market Report

Texas office in Q2 2026 — bifurcated between trophy buildings still attracting flight-to-quality demand and Class B/C buildings facing existential questions. Rents, cap rates, sublease data, and where the value plays actually exist.

13 pages 16 min readBy CRECO

Texas office at the end of Q2 2026 is two markets that don't really overlap. Trophy Class A buildings in primary submarkets — newly built or recently renovated, full amenities, walkable, transit-adjacent — are leasing at premium rents with limited concessions. Class B and C buildings in the same submarkets are competing with deep concessions, struggling to backfill tenant losses, and trading at cap rates that would have seemed impossible in 2019.

The blended Texas office vacancy number (~22%) doesn't tell that story. Trophy Class A vacancy is closer to 9%. Class B is 24%. Class C is 35%+. Direct-vs-sublease inventory tells the same story — sublease is increasingly concentrated in older buildings, and direct vacancy in trophy buildings keeps coming down.

This report walks through the bifurcated office picture metro-by-metro, with cap rate evidence from Q2 2026 closed trades, sublease data, and CRECO's commentary on where the genuine opportunities exist — both for tenants seeking deals and for investors willing to make non-consensus bets.

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What you'll walk away with:

  • Class A vs Class B office rents by metro and submarket
  • Cap rate evidence — the widening spread between trophy and commodity office
  • Sublease inventory trends and what it signals for direct rents
  • Office-to-residential and office-to-medical conversion economics
  • Where the remaining office bright spots are — and where the avoidance zones are

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What's inside

  1. Executive summary — Q2 2026 office in five numbers
  2. Rents by class and submarket
  3. Cap rates and capital markets
  4. Sublease — the receding tide
  5. Office conversion — does it actually pencil?
  6. Metro-by-metro commentary
  7. What we're telling clients

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