BREAKING NEWS

Toll Brothers debuts 55 and up community in Houston

What Led the ‘Joy Score’ in Home Remodeling?

Underpassage: The New Experiential Entry Portal Into Downtown

RNR Real Estate Briefs – Texas & more

Lender Takes Ownership of Houston Center Complex

The World’s Most Important Skyscraper is For Sale

REALTY NEWS REPORT - Logo

Downtown Houston
RNR-RalphBivinsProject-Interviews
  • 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

NGKF: Another Year of Rising Vacancy Ahead for Houston Office Market

by Realty News ReportJanuary 25, 2017
Share0

HOUSTON – The Houston office market, although there are positive signs that healing is on the way, will see an increase in the overall vacancy rate in 2017, according to the Newmark Grubb Knight Frank real estate firm.

After ending 2016 with a 19.6 percent office vacancy rate, the Houston market will see a slight increase to 20.1 percent by the end of 2017, NGKF projects.

Several new office buildings will be completed this year, most notably Hines’ 609 Main at Texas skyscraper in downtown Houston. This year’s deliveries of new space will total 2.4 million SF, reports NGKF.

“It’s going to be multiple years before we reach a full recovery,” said David Wegman, Director of Research – Texas for NGKF.

Houston’s office market will, however, see some positive absorption in 2017, a turnaround from the negative absorption of last year, he said.

Wegman, speaking at NGKF’s 2017 Houston Real Estate Discussion Wednesday morning, said the sublease space supply has peaked at 11.5 million SF. Huge blocks of office space were placed on the market in the last year or two as energy companies reduced the size of their offices and laid off employees. The sublease space market offers some bargains for tenants and the supply is being worked off.

The Energy Corridor and Downtown have the biggest concentrations of sublease space, Wegman said. He said Greenway Plaza is the healthiest submarket in Houston.

Robert Bach, Director of Research – Americas for NGKF, reviewed some national trends. Although there are exceptions in various cities and submarkets, Bach presented some “hot” and “not hot” trends.

Hot (Office ) – Old industrial buildings with a “brick and timber vibe” that have been converted to office space for creative and tech firms.

Not (Office) – Isolated suburban campuses with 1980s-vintage vintage buildings – although Dallas is an exception.

Hot: (Retail) –Street level retail in walkable urban neighborhoods and urban-like developments in the suburbs.

Not: (Retail) –Dead regional malls. But the regional mall problem is not as bad as some believe.

Jan. 25, 2017 Realty News Report Copyright 2017

Share0
previous post
Houston Could Be Headed for “Golden Era of Growth” – Tyler Mathisen Tells Colliers
next post
CBRE Takes Over Retail Leasing at West Ave

Related posts

Toll Brothers debuts 55 and up community in Houston

Realty News ReportMay 6, 2025

What Led the ‘Joy Score’ in Home Remodeling?

Realty News ReportMay 6, 2025

Underpassage: The New Experiential Entry Portal Into Downtown

Realty News ReportMay 3, 2025May 5, 2025

Leave a Comment Cancel Reply

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

Search News

CommGate
new version
ECD-RealtyNewsReport-Ad-300x250
Partners Ad
CBRE Ad
Arch Con Corporation Ad
Hines Ad
Avera Ad
RNR Ad 030124
Ziegler Cooper Ad
Lee & Associates Ad
2021 Realty News Report Ad
RNR - Lincoln Property Company
Hal Gordon - Property Tax Lawyer
Hunington Ad
230725-RNR_Digital-Ad_Red
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