Home > Market Updates, Uncategorized > Market Trend – Houston’s Office Vacancy Decreases to 11.9%

Market Trend – Houston’s Office Vacancy Decreases to 11.9%

The Houston Office market ended the second quarter 2013 with a vacancy rate of 11.9%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 765,107 square feet in the second quarter. That compares to negative (183,936) square feet in the first quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 2,085,180 square feet.

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Tenants moving into large blocks of space in 2013 include: WesternGeco moving into 554,385 square feet at Western Geophysical; Energy Transfer Partners moving into 226,654 square feet at Travis Tower; and BBVA Compass moving into 149,976 square feet at 2200 Post Oak Blvd.

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Rental rates ended the second quarter at $24.44, an increase over the previous quarter.
A total of 11 buildings delivered to the market in the quarter totaling 669,816 square feet, with 7,114,201 square feet still under construction at the end of the quarter.

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This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.7% from the previous quarter, with net absorption positive 21.27 million square feet in the second quarter. Average rental rates increased to $21.60, and 219 buildings delivered to the market totaling more than 10.25 million square feet.

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The information in this news report is based on CoStar’s Second Quarter 2013 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.

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