Oil prices taking toll on Houston office market

Overall rents fell by 1.1 percent last quarter, while Class-A rents have declined by 1.5 percent. Meanwhile, overall availability is soaring at 22.5 percent, with Class-A at 23 percent.

“The office supply-demand imbalance is expected to continue for at least the next 12 months within the environment of continued low oil prices, additional sublease opportunities and sustained construction deliveries,” said Tim Wingfield with Savills Studley.

While quarterly leasing remains flat, submarket space is surpassing plateaus, with Katy Freeway’s availability higher than 30 percent, and Westchase and The Woodlands’ greater than 25 percent.