Colliers: Houston office report 3Q 2013
HOUSTON – Colliers International released its 3Q 3012 Houston Office Market Research and Forecast Report.
More than 1.4 million sf was added to Houston’s office inventory and, at the close of 3Q 2013, 10.5 million sf of new office development was under construction.
Approximately 9.9 million sf of office space is either under construction or planned over the next two to three years. Houston’s office market posted 715,000 sf of positive net absorption in 3Q 2013, more than the 298,000 sf posted in 3Q 2012.
The citywide average rental rate increased 2.0 percent from $24.31 per sf to $24.80 per sf over the year and 1.5 percent from $24.43 per sf between quarters.
| Inventory | Vacancy Rate | Net Absorption (SF) | Rental Rate | |||||
| Submarket | Class | No. of Bldgs. | Total SF | 3Q 2013 | 2Q 2013 | 3Q 2013 | YTD 2013 | Average ($/SF/YR) |
| CBD | A | 28 | 28,249,120 | 10.8% | 12.0% | 326,951 | -243,703 | $37.19 |
| B | 29 | 8,283,453 | 18.9% | 18.9% | 5,936 | -7,393 | $25.04 | |
|
Katy Freeway | A | 34 | 7,335,394 | 6.1% | 3.2% | 350,050 | 434,154 | $32.04 |
| B | 91 | 8,847,705 | 12.8% | 12.5% | -29,625 | 76,577 | $20.66 | |
|
West Loop / Galleria | A | 35 | 14,188,640 | 13.9% | 12.2% | 55,743 | 382,087 | $33.00 |
| B | 47 | 6,073,446 | 15.0% | 14.9% | -2,839 | 37,556 | $23.39 | |
Source: Colliers International
See Houston Market Data Sources for 3Q 2013 information for more commercial real estate.
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