Q3 Houston Market & Forecast Reports
Q3 2013 | Houston Office Market Report
Houston’s Office Market Construction Pipeline Expands to 10.5M SF. Houston’s strong job growth, spurred by growth in the energy sector, continued to boost Houston’s office market in the third quarter. More than 1.4M SF was added to Houston’s office inventory and, at the close of Q3, 10.5M SF of new office development was under construction. Energy giants such as Chevron, Apache, BHP, and many others have announced plans to build new office buildings to accommodate growth. Approximately 9.9M SF of office space is either under construction (ExxonMobil, Shell and Anadarko) or planned over the next two to three years. Read the full article.
Q3 2013 | Houston Industrial Market Report
Houston’s Industrial Market 2013 YTD Positive Net Absorption Reaches 4.5M SF. Houston’s industrial market remains one of the top ten healthiest U.S. industrial markets because of its low vacancy, stable rental rates, and positive absorption. Houston posted 1.1M SF of positive net absorption in the third quarter, bringing the year-to-date net absorption to 4.5M SF. Industrial leasing activity reached 3.4M SF, mostly due to large renewals. Houston’s average industrial vacancy rate increased from 5.0% to 5.3% between quarters because of the new space added to the market, and remained unchanged when compared to the same quarter one year ago. The citywide average quoted industrial rental rate increased to $5.86 from $5.74 per SF NNN between quarters, and increased on a year-over-year basis from $5.77 per SF NNN. Read the full article.
Q3 2013 | Houston Retail Market Report
Houston’s Retail Market Vacancy Rate Holds Steady at 6.8%. Houston’s retail market posted 120,000 SF of positive net absorption in the third quarter, bringing the year-to-date total to 1.6M SF. Some of the tenants who opened new locations during the third quarter include Fresh Market, Woodlands Oriental Rug Gallery, Monkey Joe’s, and CVS. Although 196,000 SF of new retail space delivered during the third quarter, Houston’s retail vacancy rate remained at 6.8%. Currently, there is 870,000 SF in Houston’s retail construction pipeline, which includes a 185,000-SF Walmart Supercenter located at I-45 and Wayside and a 59,000-SF Buc-ees located on the Gulf Freeway in Dickinson. Read the full article.
Mid-Year 2013 | Houston Medical Office Market Report
Houston’s Medical Office Market Vacancy Drops 160 Basis Points in the First Half of 2013. Houston medical office buildings recorded 467,000 SF of positive net absorption in the first half of 2013, the majority of which (365,000 SF) occurred in the first quarter. By property class, Class A posted the largest amount of positive net absorption in the first half of the year, followed by Class C properties, posting 393,000 SF and 65,200 SF, respectively. The citywide average vacancy rate decreased 160 basis points and the average quoted rental rate decreased slightly to $23.02 from $23.11 per SF between December 31, 2012 and June 30, 2013. Read the full article.