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Transwestern: Houston office 3Q 2013Transwestern: Houston office 3Q 2013https://www.recenter.tamu.edu/news/newstalk-texas/?Item=56492013-11-21T11:00:00Z2013-11-21T10:00:00Z

HOUSTON - The Houston metro office market expanded during third quarter 2013. Job creation, especially among energy-related firms, has driven office leasing activity, and tenants are seeking quality space in prime submarkets.

Net absorption totaled 723,000 sf in 3Q 2013, compared to 530,000 sf in 2Q 2013. Tenants continue to upgrade to Class A space, which totaled 475,000 SF of net absorption in 3Q 2013.

Houston’s overall vacancy of 10.9 percent is the same as one year ago, and is the third lowest in the nation among major metro areas.

Asking rents for all classes of office space increased 1.0 percent through 3Q 2013 after rising 3.6 percent in 2012.

Class A rents rose 2.4 percent through 3Q 2013, and Class B rents increased 0.7 percent in the same period. Class A rents have been rising faster than Class B rents because of the flight to quality underway, with stronger demand for newer space.

  3Q 2013 YTD 2013
Net Absorption by Class
Class A 475,000 sf 1,415,000 sf
Class B 406,000 sf -146,000 sf

 

Net Absorption in Selected Submarkets
  3Q 2013 YTD 2013
Woodlands / Conroe 477,000 sf 483,000 sf
Katy Freeway / Energy Corridor 79,000 sf 429,000 sf
Southwest Freeway / Sugar Land 222,000 sf 356,000 sf
West Loop 111,000 sf 513,000 sf

Source: Transwestern

For more 3Q 2013 stats, see Houston Market Data Sources for free commercial reports.

Transwestern
Houston-The Woodlands-Sugar Land
Office
http://www.transwestern.net/market-research/pages/research.aspxRead more at {Source}

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