Jul 26, 2016
Avison Young 2Q 2016 office report
HOUSTON - Activity in the Houston office market has remained slow this past year amid the ongoing downturn in the energy industry, according to Avison Young.At mid-year 2016, the energy...
HOUSTON – Activity in the Houston office market has remained slow this past year amid the ongoing downturn in the energy industry, according to Avison Young.
At mid-year 2016, the energy industry finally shows signs of recovering with the bulk of energy analysts projecting rising,
not falling, oil prices through the end of the year.
A substantial amount of available space has hit the market in the form of new construction and sublease space.
For the first time in the current downturn, Class A rates fell from the previous quarter.
Class A rates are down by 1.3 percent from first quarter to $34.36 per sf.
The vacancy rate in the Houston office market increased by 40 basis points from the previous quarter to 14.1 percent due to new construction deliveries outpacing absorption.
Absorption through the rest of 2016 is expected to remain positive, but just barely so, with additional planned occupancies counteracting vacated sublease and direct space.
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