Houston absorbed
422k SF during Q1, but deliveries outpaced tenant demand, pushing vacancy 1 0bps to
16.1%. Class-A vacancy jumped 20 bps to 13.9%, largely due to Hines’ delivery of the 972k SF
BG Group Place. Class-B properties ended the quarter with a 19% vacancy, a 10 bps increase. Oil drilling activity in South Texas increased recently, leading numerous
service companies to take occupancy last quarter. This helped Class-A assets absorb
480k SF. A lot of energy firms also signed expansions last quarter, led by
KBR with a
216k SF Class-A expansion in Eldridge Oaks. EnerVest, Koch Industries, Noble Denton, Willbros Group, and EDG also expanded in Q1. One last tidbit: Houston’s
sublease inventory decreased by more than
500k SF in Q1, lowering total inventory to 3.6M.
For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
"Life is a Storm my friend. You will bask in the sunlight one moment and be battered on the rocks the next. What makes you a man is what you do when that storm comes. You must look into that storm and say You must do your worst for I will do mine and the fates will know you for the man you are."
The Count of Monte Cristo
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