I recently participated as a guest on a local Houston radio program to discuss the city’s perception or should I say misconceptions among people around the country. However, in commercial real estate circles, it is no secret that Houston has one of the strongest commercial real estate markets in the country.
In cased you missed my previous posts, here is recap of the Houston office, industrial and retail sectors for the second quarter of 2013.
Houston’s Office Market Invigorated by Energy Giants’ Growth
Houston’s strong job growth, spurred by growth in the energy sector, continued to boost Houston’s office market in Q2 2013. Although leasing momentum slowed in the first quarter due in part to a lack of quality inventory, absorption increased in the second quarter as newly constructed space was delivered. Houston’s office market posted 286,000 SF of positive net absorption in the second quarter, much less than the 688,000 SF posted in the same quarter one year ago. Absorption will pick up momentum again later in the year when a portion of the 9.4 million SF of office space under construction is delivered. Additionally, energy giants such as Chevron, Apache, BHP…. more
Houston’s Industrial Market Adds 2.5M SF of New Inventory In First Half of 2013 – Vacancy Remains at 5.0%
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 336,000 SF of positive net absorption in the second quarter, bringing year-to-date net absorption to 2.6M SF. Industrial leasing activity reached 3.3M SF, mostly due to large renewals. Houston’s average industrial vacancy rate increased from 5.0% to 5.1% between quarters, but decreased by 30 basis points over the past year. The citywide average quoted industrial rental rate increased by only…. more
Houston’s Retail Market Vacancy Rate Drops Below 7.0%
Houston’s retail market posted 560,000 SF of positive net absorption in the second quarter, bringing the year-to-date total to 960,000 SF. Some of the tenants who opened new locations during the second quarter include HEB, LA Fitness, Michael’s, and Monkey Joe’s. Although 276,000 SF of new retail space delivered during the second quarter, Houston’s retail vacancy rate decreased from 7.0% to 6.8% between quarters and from 7.2% in Q2 2012. Currently, there is 632,000 SF in Houston’s retail construction …. more