Transwestern Houston metro outlook mid-year 2015

HOUSTON – The Houston office market is still seeing some major leases signed, but overall activity has slowed as tenants exercise caution in the current economy, according to the Houston Metro Real Estate Outlook report from Transwestern.

The overall office vacancy rate was 12.5 percent at mid-year, up from 11.4 percent in first quarter 2015. Direct vacancy was 11.4 percent, up from 10.4 percent over the same period.

Net absorption of industrial space totaled 3.4 million sf in 2Q 2015, for a mid-year total of 6.2 million sf.

There was 11.0 million sf of industrial space under construction in 2Q 2015, up significantly from 8.6 million sf last quarter. This space was 57 percent preleased at mid-year.

Houston’s retail market has shown tremendous growth through mid-year, adding 13,700 jobs over the 12 months ending in May, a 4.7 percent increase.

Grocery-anchored centers still have a dominant hold on construction starts, and the metro will see a fair share of luxury stores and new restaurants delivered in 2015 as well.

*Does not include buildings under construction or owned by the government.
**Includes buildings 50,000 sf and greater.
***Includes buildings 15,000 sf and greater.

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