CoStar: Houston Office Mid-Year 2014 Report

HOUSTON – The office market ended second quarter 2014 with a vacancy rate of 11.0 percent, according to CoStar Group’s Houston Office Mid-Year 2014 Report.

Net absorption for the overall office market was positive 2,042,698 sf in 2Q 2014. That compares to positive 2,672,285 sf in 1Q 2014.

The largest lease signings occurring in 2014 included:

•  American Bureau of Shipping at One Greenspoint Place leased 224,833 sf;

•  Sasol North America at Woodbranch Plaza IV took 171,475 sf deal signed; and

•  the 127,684-sf lease signed by Energy XXI Services at One City Centre.

The average quoted asking rental rate for available office space, all classes, was $27.03 per sf per year at the end of 2Q 2014. This represented a 1.5 percent increase in quoted rental rates from the end of 1Q 2014, when rents were reported at $26.64 per sf.

During 2Q 2014, 23 buildings totaling 1,971,823 sf were completed. This compares to 39 buildings totaling 2,487,107 sf that were completed in 1Q 2014. There were 17,760,993 sf of office space under construction at the end of 2Q 2014.

Source: downtownHouston.org