Houston office demand fueled by employment
HOUSTON – PM Realty Group’s 3Q 2013 Houston Office Market Report noted that high employment growth continues to drive office space demand. Specifically, direct net absorption during the quarter totaled a little more than 2.1 million sf, bringing the year-to-date total to 3.7 million sf.
Class A direct occupancy rates stood at 90.2 percent, moving up 110 basis points within the past year to reach a six-year high.
To no one’s surprise, the Katy Freeway/Energy Corridor led the way in construction and leasing activity, posting close to 1.1 million sf of direct absorption growth so far in 2013, and 723,577 sf for the quarter.
| Submarket | Occ. Rate | Change Y-O-Y* |
| Katy Freeway | 91.9% | 0.7% |
| Westchase | 91.3% | 1.3% |
| The Woodlands / Conroe | 90.3% | -0.7% |
| Greenway Plaza | 89.4% | -0.7% |
| Bellaire | 89.2% | 0.5% |
| Midtown / Allen Parkway | 89.1% | 6.8% |
| Galleria / Uptown | 88.5% | 0.7% |
| Central Business District | 88.4% | 1.2% |
| San Felipe / Voss | 88.2% | 1.5% |
| Kingwood / Humble | 87.6% | 0.4% |
| Baytown & I-10 East | 87.0% | -2.3% |
| S. Main / Medical Center / South | 86.8% | -2.3% |
| Gulf Freeway / Pasadena | 86.4% | 0.9% |
*Year-over-year
Read more at GlobeSt.com.
For the full PMRG and other similiar reports for Houston Market Data Sources.
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