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Q4 2016 Houston Office Research & Forecast Report

01/31/2017
Published By: Lisa Bridges

After several years of economic woes, Houston's office market coasts into 2017

After several challenging years, Houston’s office market
saw some improvement over the quarter. The market will
most likely remain relatively flat, coasting through 2017.
The citywide vacancy rate increased by only 40 basis
points between quarters, and absorption, although negative,
was only a third of the previous quarter’s total. Q4 2016
witnessed several energy companies remove available
sublease space as they began to shift out of the contraction
mode and begin looking forward again. Although leasing
activity remains lower than normal, deals are getting done
and some of those even include pre-leasing of proposed
developments.

Houston’s office market posted 0.1M SF of negative net
absorption during the fourth quarter, an improvement
from the 0.3M SF of negative net absorption posted in the
previous quarter. Houston’s city-wide office vacancy rate
rose significantly on an annual basis, increasing by 220 basis
points from 15.3% to 17.5% in Q4 2015. As stated earlier,
the vacancy rate rose by only 40 basis points over the
quarter, much less than in previous quarterly comparisons
during 2015 and 2016.

No new buildings delivered during Q4 however...click here to visit our website and view the complete report. 

Release Date01/31/2017 - 08:30

Source

Colliers International

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