Home > Market Updates, Uncategorized > Houston’s Office Vacancy Decreases to 11.2%

Houston’s Office Vacancy Decreases to 11.2%

The Houston Office market ended the first quarter 2014 with a vacancy rate of 11.2%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,549,293 square feet in the first quarter. That compares to positive 1,823,837 square feet in the fourth quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 1,880,574 square feet.

Tenants moving into large blocks of space in 2014 include: Technip moving into 428,831 square feet at Energy Tower III; Mustang Engineering moving into 186,375 square feet at 17320 Katy Fwy; and Modec International moving into 126,222 square feet at Energy Crossing II.

Rental rates ended the first quarter at $26.27, an increase over the previous quarter.

A total of 36 buildings delivered to the market in the quarter totaling 2,473,507 square feet, with 12,599,197 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.5% from the previous quarter, with net absorption positive 21.68 million square feet in the first quarter. Average rental rates increased to $22.17, and 321 buildings delivered to the market totaling more than 16.1 million square feet.

Reprint from  CoStar.com     By Bryce Meyers

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