Oil Price Slump Hits Houston Office MarketOil Price Slump Hits Houston Office Markethttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=99752015-07-10T09:32:00Z2015-07-10T00:00:00Z

HOUSTON (Colliers International) – Colliers International says the city's second quarter office market indicators reflected late 2014's oil price decline. The "mid" and "downstream" sectors of the energy market remained strong but tended to occupy less office space than the "upstream" companies.

Houston’s office leasing activity decreased 35.8 percent between quarters, reporting only 1.8 million sf in second quarter 2015. Twelve months ago, the market reported 5.5 million sf, a 67.5 percent difference.

Over 2.1 million sf of new inventory was delivered in the second quarter, 6 percent of which was vacant. The new office construction pipeline totals 12.3 million sf. Of that, 61.5 percent is preleased. The majority of that space is in suburban submarkets and will deliver over the next 12 months.

For the first time in five years, Houston’s office market posted negative net absorption, primarily due to tenants relocating to new buildings and companies placing excess space on the sublease market. For the most part, average rental rates remained flat. However, the average CBD Class-A rental rate increased 2.7 percent from $41.96 per sf in the first quarter to $42.32 per sf in the second.

Colliers said the area created 62,300 jobs between May 2014 and May 2015, a 2.1 percent increase over the previous year.

Houston-The Woodlands-Sugar Land
Read more at {Source}

 Search NewsTalk Texas