Houston raises the bar on new Class A office rentsHouston raises the bar on new Class A office rentshttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=26872014-10-24T14:24:00Z2014-10-24T06:38:00Z

HOUSTON - Newly constructed, Class A office space in Greenway Plaza, the West Loop/Galleria area and the Central Business District is commanding comparatively higher rent levels.

In some cases, tenants will pay up to $6 more per sf for these buildings, compared to other Class A offices in these submarkets, according to the Houston office of CBRE. The CBRE data takes into account all Class A buildings.

When comparing rent for existing Class A office buildings to asking prices for projects under construction, Greenway Plaza, West Loop/Galleria area and the Central Business District will see the largest difference.

The majority of the new buildings in these submarkets are considered top of the line, called trophy assets, and typically command high rents, according to Graham Hildebrand, Houston research manager for JLL.

When compared to existing trophy assets, such as BG Group Place, the gap between asking prices is likely to be less, closer to a $3 difference, said Hildebrand.

Office construction in Houston has increased by about 54 percent over the last 12 months. More than half of that space is leased or committed, with large tenants moving or expanding to take the bulk of it. That's the highest level the area has seen since the boom of the 1980s.

Houston Business Journal
Houston-The Woodlands-Sugar Land
http://www.bizjournals.com/houston/print-edition/2014/10/24/newly-constructed-office-space-raises-the-bar-on.htmlRead more at {Source}

 Search NewsTalk Texas