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.
Executive summary — Q2 2026 office in five numbers
The headline office statistics for Q2 2026 mask the bifurcation that defines the segment today. Read these five numbers as a top-line snapshot — the rest of the report unpacks the divergence.
- Statewide office vacancy: 21.8% (down 40 bps YoY for first sustained improvement since 2019)
- Trophy Class A vacancy in primary submarkets: 8-12%
- Class B office vacancy in primary submarkets: 22-28%
- Texas office sublease inventory: 28.4M SF — down from 34M SF peak in mid-2024
- Cap rate spread between trophy Class A and Class B: ~250 bps (widest in modern Texas office market history)
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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
What's in the rest of the report
- Rents by class and submarket
- Cap rates and capital markets
- Sublease — the receding tide
- Office conversion — does it actually pencil?
- Metro-by-metro commentary
- What we're telling clients