HOUSTON - Construction of three office buildings is the Galleria area’s first new Class A product in 20 years, but the extra space won’t bring rental rates down according to the Houston Skyline Review published by Jones Lang LaSalle Inc.
Class A office vacancy rates are at 10.6 percent in third quarter 2012 — down from 14.2 in 3Q 2011 — and average Galleria/West Loop rental rates are soaring and are projected to continue to increase.
The Galleria submarket is currently 91.5 percent occupied.
Two buildings under construction in the Galleria market are the BBVA Compass Plaza at 2200 Post Oak Blvd. and 3009 Post Oak Blvd., each of which are more than 300,000 sf. Another building, at BLVD Place, is under construction in the area and will contain about 64,000 sf of Class A office space.
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