Market Report: Houston Class A Office Buoys Market in Q2’09

by CoyDavidson on September 6, 2009

Office Report pic 2q

Houston’s office market recorded stronger leasing and sales activity in the second quarter of 2009 compared to the first quarter, even as year-over-year vacancy increases and negative net absorption prevailed citywide. In sharp contrast to the previous office market downturn of 2001-2002 when the local Class A office sector was severely battered by the implosion of key energy and financial firms, Houston is currently experiencing a widening gap between Class A and B office properties at midyear 2009, with the latter bearing the brunt of the slowing economic conditions. This is particularly apparent in the Central Business District where Class A office vacancy remains in the single-digits, while downtown Class B vacancy has reached over 20%. Also indicative of the property class dichotomy is the year-to-date 1.1 million sq. ft. of negative net absorption for suburban Class B properties, compared to 482,881 sq. ft. of positive net absorption for suburban Class A properties.

To download a complete copy of the report clink the link below:

Houston Office Market Report 2q 2009

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