Colliers 3Q 2014: Houston office YTD delivers 4.5M SF
HOUSTON – Houston’s strong economy continues to spur office development with over 17.3 million sf currently under construction, according to Colliers International 3Q 2014 Office Report.
Over 1.2 million sf of new inventory delivered during Q3, bringing 2014 year-to-date delivered inventory to 4.5 million sf. Our forecast projects another 5.3 million sf of new inventory will be completed by year-end 2014, which includes the ExxonMobil north campus.
Houston’s economy is expected to remain strong in 2014 due to healthy job growth and continued expansion in the energy sector.
Houston’s office market posted 420,419 sf of positive net absorption in 3Q 2014, much less than the 1.6 million sf posted in the previous quarter.
Suburban Class A space posted the largest gain, with 631,776 sf of positive net absorption, the majority of which occurred in The Woodlands, Katy Freeway, and West Loop/Galleria submarkets.
| 2Q 2014 | 3Q 2014 | |
|
Citywide net absorption (SF) | 1.6 million | 420,000 |
|
Citywide avg. vacancy | 11.6% | 11.9% |
|
Citywide avg. rental rate | $26.52 | $26.94 |
|
Citywide delivered inventory (SF) | 1.7 million | 1.5 million |
| Class A Rental Rate | ||
| CBD | $40.54 | $42.52 |
| Suburban | $32.17 | $31.80 |
| Class A Vacancy | ||
| CBD | 9.9% | 9.8% |
| Suburban | 8.9% | 9.6% |
Click here to see the full Houston Office Market Report 3Q 2014 with submarkets from Colliers.
See Houston-Sugar Land-Baytown Market Data Sources for more office data.
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