Houston office vacancy decreases to 11.2 percent: CoStar

HOUSTON – The office market ended first quarter 2014 with a vacancy rate of 11.2 percent, according to CoStar Group.

The vacancy rate was down, with net absorption totaling positive 2,549,293 sf in 1Q 2014. That compares to positive 1,823,837 sf 4Q 2013. Vacant sublease space increased in the quarter, ending 1Q 2014 at 1,880,574 sf.

Tenants moving into large blocks of space in 2014 include Technip moving into 428,831 sf at Energy Tower III; Mustang Engineering moving into 186,375 sf at 17320 Katy Fwy; and Modec International moving into 126,222 sf at Energy Crossing II.

Rental rates ended 1Q 2014 at $26.27, an increase over 4Q 2013. A total of 36 buildings delivered to the market in 1Q 2014 totaling 2,473,507 sf, with 12,599,197 sf still under construction at the end of the quarter.

The U.S. National Office vacancy rate decreased to 11.5 percent from 4Q 2013, with net absorption positive 21.68 million sf in 1Q 2014. Average rental rates increased to $22.17, and 321 buildings delivered to the market totaling more than 16.1 million sf.

Read more at CoStar Group.