BREAKING NEWS

58 Cities Drop Off Million-Dollar Home List

RNR Real Estate Briefs – HOU, AUS, DAL & more

Offices For Energy Transition

Partners Buys Former Hartman Properties

Griffin Partners Gains Tenants at Loop Central

Historic Building Redo Planned

REALTY NEWS REPORT - Logo

Banner
  • Home
  • Categories
    • Breaking News
    • Houston
    • Residential
    • New Development
    • People
    • Office
    • Multi-Family
    • Capital Markets
    • Texas
    • Retail
    • Hospitality
    • Industrial
    • Land
    • Lease Brief
    • Medical
    • National
    • Realty News Report
    • Trades
    • Uncategorized
  • Archive
  • Subscribe
  • The Ralph Bivins Project
  • About
  • Contact
FacebookLinkedinYoutubeEmail
REALTY NEWS REPORT - Logo

Colliers: A Huge Jump in Office Vacancy in Houston

by Realty News ReportMay 1, 2017
Share0
Lisa Bridges, Colliers.
Lisa Bridges, Colliers

HOUSTON – Houston’s office vacancy rate skyrocketed over the last year, hitting 18.5 percent in the first quarter, up from 15.3 percent in the first quarter of last year, according to Colliers International.

More new office space continues to be delivered to the market at the same time energy companies are shedding excess space. The completion of Hines’ 1 million SF building at 609 Main in downtown was a huge addition. And although 609 Main is opening over 50 percent occupied, its tenants leave behind vacancy in other properties.

The downtown Class A vacancy rate took a chilling turn, going from 12.7 percent at year end to 17 percent at the end of the first quarter, Colliers reported.

Colliers reported citywide negative net absorption over 700,000 SF in the first quarter. Downtown stats took a hit when Freeport McMoRan completed a buyout of their lease at 717 Texas Avenue in downtown. That dropped 366,000-SF of empty space directly on the market.

The sublease space has declined somewhat from its high of 12 million square feet in 2016. But it’s still over 10 million square feet, Colliers notes, with the largest chunk being 801,990 available in One Shell Plaza.

The good news is construction is slowing.

“Houston’s office market has struggled over the past few years with rising vacancy and slower than average job growth due to a weakened energy market,” writes Lisa Bridges, director of market research at Colliers. “However, as the office construction pipeline has grown smaller and most spec developments have been put on hold, the office market appears to be stabilizing.”

The notable exception is the recent start of Skanska’s Capitol Tower, which will deliver 754,000 SF of downtown office space in the first half of 2019. The foundation of the building was poured in August of 2015 and a parking garage has been built, reducing the construction time. With Bank of America as the lead tenant, Skanska has put the building into high gear again.

But Houston’s job growth is positive, although not abundant, and the sublease supply is subsiding. So Houston’s office market appears to be stabilizing, Bridges said.

“Available sublease space has decreased over the last two quarters and energy sector layoffs have declined,” Bridges said. “The market will most likely remain relatively flat, plodding through 2017.”

May 1, 2017 Realty News Report Copyright 2017

Share0
previous post
WeWork Leases 86,000 SF in Jones at Main Building in Downtown
next post
New Bacco Wine Lounge Points to Trend of Cycling Along Bayou Trails

Related posts

58 Cities Drop Off Million-Dollar Home List

Realty News ReportMarch 20, 2023

RNR Real Estate Briefs – HOU, AUS, DAL & more

Realty News ReportMarch 18, 2023March 18, 2023

Offices For Energy Transition

Realty News ReportMarch 15, 2023

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Search News

Partners Ad
CBRE Ad
Arch Con Corporation Ad
Hines Ad
Avera Ad
Ziegler Cooper Ad
Lee & Associates Ad
2021 Realty News Report Ad
Property Logos
RNR - Lincoln Property Company
Hal Gordon - Property Tax Lawyer
Hunington Ad
Evergreen Commercial Realty
STREAM Ad
Hunington Ad

Let's Connect

logo
About US
Author Ralph Bivins is editor of Realty News Report, which covers regional and national news. Bivins recently received the Gold Award for Best Column in the National Association of Real Estate Editors Journalism Competition. Contact us
Follow us
FacebookLinkedinYoutubeEmail
@2022 All Right Reserved. Powered by CGS Digital Marketing
REALTY NEWS REPORT - Logo
FacebookLinkedinYoutubeEmail
  • Home
  • Categories
    • Breaking News
    • Houston
    • Residential
    • New Development
    • People
    • Office
    • Multi-Family
    • Capital Markets
    • Texas
    • Retail
    • Hospitality
    • Industrial
    • Land
    • Lease Brief
    • Medical
    • National
    • Realty News Report
    • Trades
    • Uncategorized
  • Archive
  • Subscribe
  • The Ralph Bivins Project
  • About
  • Contact