Transwestern: Houston office 3Q 2013
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 | |
|---|---|---|
| Class A | 475,000 sf | 1,415,000 sf |
| Class B | 406,000 sf | -146,000 sf |
| 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.
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