PMRG: Houston office market 3Q 2015

​​​​​​HOUSTON – Houston’s office leasing market has held up and managed to post 1,019,195 sf of positive direct net absorption during third quarter 2015 — ​​bringing the year-to-date tally to nearly 1.6 million sf, according to PMRG Houston.

The Class A market experienced 1,046,727 sf of occupancy gains, with over half of the quarterly gains attributed to ConocoPhillips moving into 546,604 sf in the recently delivered Energy Center Three.

The Class B sector countered these gains with 81,547 sf of losses during the quarter, bringing the year-to-date loss to 323,911 sf, even though the Class A sector has recorded nearly 1.8 million sf of direct net absorption for the year.

Direct occupancy levels have dropped 300 basis points to 87.1 percent within the past 12 months because of the steep supply/demand imbalance. Meanwhile, Class B direct occupancy rates have only declined by 10 basis points to 85 percent over the past 12 months.