HOUSTON - Houston’s office market indicators have begun to reflect the dramatic drop in oil prices that occurred in the fourth quarter of last year, according to Colliers International's 1Q 2015 report.
Over 3.5 million sf of new inventory delivered during 1Q and about 68 percent of the new inventory is preleased including 1.5 million sf of ExxonMobil’s North Houston campus.
Houston’s office construction pipeline is still over 14 million sf of which 65 percent is preleased. The majority of the space is located in suburban submarkets and is scheduled to deliver in 2015.
There was 1.2 million sf of positive absorption in 1Q, about one-half of what was recorded in the previous quarter.
The citywide average rental rate increased slightly by 0.9 percent between quarters from $27.12 to $27.35 per sf. The average CBD Class A rental rate increased over the quarter, however, the average Class A suburban rental rate decreased.
See Colliers' Houston Office Market Report 1Q 2015 with submarkets. Also see Houston Market Research and Houston NewsTalk.
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