Jul 5, 2016
Here’s what office buildings are outperforming Houston’s Class A market
HOUSTON - Downtown high-rise trophy towers of more than 500,000 sf are outperforming other Class A buildings in terms of direct vacancy.These trophy buildings, which include the 1.9 million-sf Chase Tower...
HOUSTON – Downtown high-rise trophy towers of more than 500,000 sf are outperforming other Class A buildings in terms of direct vacancy.
These trophy buildings, which include
- the 1.9 million-sf Chase Tower at 600 Travis,
- the 974,000-sf BG Group Place at 811 Main St., and
- the 1.83 million-sf Wells Fargo Bank Plaza at 1000 Louisiana St. had an average vacancy rate of 9.4 percent in the 1Q 2016.
By contrast, the city’s Class A properties as a whole had vacancy of 15.5 percent.
The leasing activity at these buildings is still flat, though, and the broader Class A market is still classified as tenant favorable in the report.
These downtown buildings have had higher rents for seven consecutive quarters—they garnered $31.83 per sf in 1Q 2016 compared to $23.70 per sf for Class A buildings in other parts of Houston, according to JLL.
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