Houston-area real estate investments to top $11.6B in 2015

​HOUSTON – Investors pumped plenty of money into Houston commercial real estate in 2015, but low oil prices could dampen activity next year.

Overall office vacancy rates are 16 percent and rising as energy companies cut jobs, consolidate and put sublease space on the market, according to commercial real estate firm JLL.

Including deals expected to close by year’s end, Houston is on track to log $11.6 billion in sales, according to research firm Real Capital Analytics. Down slightly from $12.3 billion in 2014.

Office sales amounted to $2.9 billion of the $11.4 billion in sales so far this year, Real Capital Analytics found.

Investor interest remains strong in older Class B and Class C buildings if they have some vacancy that could be leased up and house tenants from a variety of industries.

Memorial Hermann sold 11 medical office buildings with 1.2 million sf across the Houston area to HCP for $225 million.

Retail and industrial properties each made up 16 percent of the sale activity this year, totaling about $1.8 billion each, according to Real Capital Analytics. Hotels made up $583 million and development sites made up nearly $356 million of the 2015 investments.

Below is the total value of Houston-area real estate investments in 2015, including deals under contract, for properties valued at $2.5 million or more:

Office: $2.9 billion, up 4 percent from $2.8 billion in 2014
Industrial: $1.8 billion, up 23 percent from $1.1 billion in 2014
Retail: $1.9 billion, up 15 percent from $1.5 billion in 2014
Apartments: $4.1 billion, down 47 percent from $4.0 billion in 2014
Total: $11.6 billion, down 5 percent from $12.3 billion in 2014