Texas·Data as of Q4 2025
Houston, TX CAM Reconciliation Guide
Vacancy rates, property tax system, operating expense benchmarks, and market-specific CAM billing considerations for Houston, TX commercial landlords.
Current Vacancy Rates
26.5%
Office Vacancy
5.2%
Retail Vacancy
7.8%
Industrial Vacancy
Source: CBRE/JLL Q4 2025 Market Reports
Average CAM per Square Foot
$12.50
Office /SF/yr
$8.75
Retail /SF/yr
$4.25
Industrial /SF/yr
Property Tax System
Assessment Authority
Harris County Appraisal District (HCAD)
Protest Procedure
File protest by May 15 with HCAD; ARB hearing within 90 days. Professional agents common.
Effective Tax Rate
~2.2% effective rate (no state income tax)
Key Submarkets
Energy CorridorThe WoodlandsGalleria/UptownWestchaseKaty Freeway
CAM Billing Considerations
- Energy sector vacancy concentration in Energy Corridor
- Hurricane insurance premium volatility
- High gross-up prevalence due to 26.5% vacancy
- No state income tax — property taxes are primary revenue source
- Flooding risk drives insurance cost allocations
Local BOMA Chapter
BOMA Houston
Market Context
Houston is CapVeri's geographic beachhead. 26.5% office vacancy means gross-up clauses are actively triggered on virtually every lease. Hurricane and flood insurance pass-throughs are a major audit focus.
Related Resources
Reconcile Houston, TX Properties
CapVeri accounts for market-specific vacancy, local tax timing, and property-type-specific expense pools in your reconciliation.
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