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Houston Office Vacancy Hits Highest Point Since 1994, Colliers Reports

Lisa Bridges

HOUSTON – Houston’s office vacancy hit its highest point since 1994 in the second quarter, as the office market continues to suffer from the impact of low oil prices, according to Colliers International.

The overall vacancy rate reached 18.8 percent in the second quarter, up from 16.5 percent in the second quarter of 2016, Colliers reported.

“Houston’s office market continues to struggle as global oil futures trade below $50 a barrel,” reports Lisa Bridges, director of market research at Colliers in Houston. “With no indication that prices will rise in the immediate future, it will take a while to absorb all of the space the energy industry has placed on the market over the last few years.”

The Houston office market slipped back in the second quarter, posting a negative 700,000 SF of net absorption, Colliers reported.

Class A space in the downtown market jumped to 17.3 percent, up from 11.7 percent a year ago. Part of the increase can be attributed to the completion of the 609 Main at Texas tower, a 1 million SF tower by Hines.

Options are plentiful for big companies. Colliers reports 94 buildings have contiguous blocks of 100,000 SF or more of vacant space.

Aug. 2, 2017 Realty News Report Copyright 2017

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