Houston CRE Market Reports | Q1 2017

by CoyDavidson on May 20, 2017

Houston Commercial Real Estate Market Reports

  • Houston Office Construction Down 50% from One Year Ago
  • Houston’s Industrial Market Continues to Expand
  • Houston’s Retail Market Remains Healthy

OFFICE

Houston’s office market has struggled over the past few years with rising vacancy and slower than average job growth due to a weakened energy market. However, as the office construction pipeline has grown smaller and most spec developments have been put on hold, the office market appears to be stabilizing… read the full report

INDUSTRIAL

During the first quarter of 2017, 1.7M SF of Houston’s industrial inventory was absorbed, slightly less than the 1.9M SF absorbed in the previous quarter. Industrial leasing activity decreased between quarters, dropping from 5.3M SF to 3.6M SF. The average vacancy rate increased 30 basis points over the quarter from 5.3% to 5.6%. About 60% of the 3.4M SF of new space delivered in Q1 2017 was pre-leased and 78% of the 5.2M SF currently under construction is pre-leased…read the full report

RETAIL

Houston’s retail market moves into 2017 with a healthy outlook. Not much changed between quarters with vacancy rates ticking up only 20 basis points. Although Houston lost about 80,000 high income jobs between 2014 and 2016, retail market indicators show no signs of a struggling economy. Approximately 68% of the retail space under construction at the close of Q1 2017 is pre-leased. Despite the 1.5M SF of new inventory delivered in the first quarter… read the full report

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