Energy industry recovery bolsters Houston office activity

​​​HOUSTON – Office completions are expected to fall to 1.6 million sf in 2018, says a Marcus & Millichap report. ​

Last year, nearly 3.5 million sf of office space came online in the metro, but developers are pushing back. 

Vacancy is expected to increase 20 basis points to 20.5 percent this year, the sixth consecutive annual rise. 

Marcus & Millichap predicts average asking rates will tick up 0.8 percent to $29.18 per sf, more than reversing last year’s 0.5 percent dip. 

Increased energy prices and stabilization in the oil and gas industry have prompted hiring to resume, bolstering the office market.