Q1 Houston Market Research & Forecast Reports

by CoyDavidson on May 2, 2011

Colliers International | Houston


Renewals increase in 1st Quarter as Houston Office Tenants Take Advantage of Lower Lease Rates. The Houston Office Market posted 378,000 square feet of positive net absorption during the first quarter, with the suburban sector once again outperforming the Central Business District (CBD). Year-over-year vacancy rates decreased slightly from 16.2% to 15.9% citywide. Rental rates continued to decrease during the 1st quarter, with the city wide average rate dropping to $22.81 from $23.46 per square foot. Vacancy in CBD Class A properties continued to soften, reaching 12.6% compared to 8.8% a year ago…more


Houston’s Industrial Vacancy Continues to Shrink. Houston’s industrial market fundamentals continue to strengthen, adding 531,985 SF of positive net absorption in the first quarter, an improvement from the positive net absorption of 354,079 SF recorded in fourth quarter 2010. In addition, Houston’s industrial vacancy decreased slightly by 20 basis points to 6.0% from 6.2% the previous quarter. The quoted city wide rental rate for industrial space decreased slightly by 0.4% between quarters from $5.33 to $5.31 per SF NNN, but increased by 8.1% on a year-over-year basis from $4.88 per SF NNN. On the leasing front, three leases over 100,000 SF were signed during the first quarter…more


Houston’s Retail Market Occupancy Continues to Strengthen. Houston’s retail market continued to improve in the first quarter of 2011 with positive net absorption and lower vacancy rates. For the past seven quarters, Houston’s retail market has posted positive net absorption. Retail vacancy rates for all product types stood at 8.0%, down from 9.1% at this time last year. Developers have curtailed development, delivering only 49,600 SF of new retail space in the first quarter – compared to 228,000 SF in the first quarter last year – and only added six projects to the construction pipeline. Overall, the local market is performing well under less than optimal economic conditions…more

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