This Houston submarket has 'no demand' for land dealsThis Houston submarket has 'no demand' for land dealshttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=139742016-07-26T05:00:00Z2016-07-26T20:20:00Z

​HOUSTON - Land not needed anymore by energy giants such as Chevron Corp. and Shell Oil Co. have left Houston land brokers with hundreds of acres to market. 

Some of the land is competitively positioned—Shell's 21.3-acre site at 1500 Old Spanish Trail, which it has owned since 1971, is in the heart of the Texas Medical Center, which is booming.

Meanwhile, the Energy Corridor submarket has 1.2 million sf of sublease space available, according to HBJ research.​

In terms of direct vacancy, it's dealing with a negative net absorption of more than 102,000 sf, according to a second-quarter report from Chicago-based JLL.

Like rooftops begets retail, office demand begets land values. 

JLL's Bruce Rutherford said there's little to no market for land deals in distressed office submarkets in Houston's current economic climate. 

"If you're talking about land along the Energy Corridor at the moment, there is no demand to lease office space and there's no demand to take sublease space off the market … because conditions in the energy industry are pretty tough," Rutherford said. 

"When there's no demand for office space, the value of the land falls off dramatically, and the (demand) to buy the land falls off and may go to being zero, temporarily." ​
Houston Business Journal
Houston-The Woodlands-Sugar Land

​See Houston office market research​ for more.

Read more at the {Source}

 Search NewsTalk Texas