Suburban Office is Driving the Houston Market Recovery
Houston has added more jobs than any other metropolitan area in the U.S. over the last year. As a result, the Houston office market has been one of the stronger performers in the country recording over 2.3 million square feet of net office space absorption during the past two years. In many cities around the nation, the trend has been one of downtown office locations outperforming the suburban office sector.
Net Office Space Absorption (Square Feet – All Classes)
The strength of the Houston office market has been leasing activity in the suburban office sector which has outperformed the Central Business District (CBD) over the past two years. I should note that the CBD had two major office towers completed during this period, which added to the total inventory and had some impact on the net absorption figures. However, the suburban market is not without new inventory during this same period. My point is that any significant trend of suburban office tenants moving downtown just doesn’t exist in Houston.
Net Office Space Absorption (CBD vs Suburban)
Click here to read the 3Q 2011 Houston Office Market Report