The Houston Office Market Continues to Shine
Yes, the title of this post is a sarcastic poke at CRE’s and the media that covers it tendency to over-use cliches’ and buzzwords, which is one of my pet peeves.
The fact that the Houston economy is humming comes as no surprise to us in the ‘Energy Capital” of the world and when it comes to our office market Houston doesn’t always get as much as national media attention as some high profile markets, and shall I dare use the term “gateway cities.” Those of us that making our living in the Houston office market have recognized that the Tenant’s market is over.
Our research staff is currently hard at work preparing the end of the quarter market reports and I am typically involved in that process from a review standpoint for our office market report. While we are not ready yet to release final numbers, I can tell you that I expected a big net absorption number for the Houston office market in the first quarter. Here is my teaser, it was even bigger than I expected. Houston, contributed 8.1 percent of total U.S. absorption in 2011, more than any other market— despite the fact that Houston only accounts for 3.4 percent of the national office inventory.
Houston absorbed 2.6 million square feet of office space in 2011 and I will give you a little hint, expect the first quarter 2012 figure to indicate robust leasing activity. Stay tuned for the First Quarter 2012 Houston Office Market Report.