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Colvill: Houston Class-A office occupancy decline continuesColvill: Houston Class-A office occupancy decline continueshttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=111912015-11-17T06:00:00Z

​​​HOUSTON – Local Class-A office occupancy continues to decline, ending the third quarter at 80.8 percent (including sublease space), down from 88.1 percent this time last year.

​According to Colvill Office Properties' latest office market report, average quoted rental rates declined in the third quarter to $25.64 per sf, down $0.63 from a year ago.

Many landlords have reduced asking rental rates and offered more concessions such as higher tenant improvement allowances and rental abatement.

Colville reports that Houston has seen a "flight to quality" over the past few years, driving Class-A, tier one absorption. Many of the new buildings that signed leases during that period are still delivering, causing net absorption to remain positive.

The city delivered 759,000 sf of new office development space during the third quarter, bringing the total to 4.2 million sf year-to-date (60.3 percent leased) with an additional 2.7 million sf (52.2 percent preleased) set to deliver by the end of this year.

Currently, Colvill is tracking a total of 5.8 million sf of one-floor-or-more sublease space in Class-A and -B buildings in the city.

Colvill Office Properties
Houston-The Woodlands-Sugar Land
Office
http://www.colvilloffice2.com/Eblast/COP/2015/COP_3Q15_Report_Media.pdfRead more at {Source}

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