Houston’s commercial property market experienced a significant slump in Q1 2023, with sales dropping 74% compared to the same period last year. This decline reflects a nationwide trend due to increased interest rates and tighter lending standards. Office vacancies in Houston are at nearly 27%, with leasing down 29% in Q1 compared to the last three months of 2022. The recovery of the market and an increase in commercial property transactions will likely depend on the stabilization of interest rates.