In Houston, the Burbs are Alive and Well, as a Matter of Fact Thriving
Houston is arguably the hottest office market in the country with construction cranes dotting the skyline. The interesting thing is that there are no construction cranes in the Central Business District, although that could change soon. We just don’t know who will start first Hines or Skanska.
While there are two new office projects in the Galleria/Uptown submarket and a third inner loop tower likely to start soon, the bulk of the new office construction is confined to two submarkets. You will be hard pressed to find two suburban office submarkets anywhere in the country as red hot as the Woodlands and the Energy Corridor. 80% of Houston’s 9.4 million square feet of new office construction is accounted for in the Energy Corridor and The Woodlands submarkets.
In Silicon Valley there are some massive corporate campuses breaking ground, but Houston also has one of the largest corporate campus under construction in the ExxonMobil Campus as well as a wave of speculative office construction.
In the Energy Corridor alone there is presently 2.9 million square feet of new office construction with 86% of the space pre-leased. In the Woodlands if you take into account ExxonMobil and Anadarko there is 4.6 million square feet under construction with 91% of the space spoken for.
To give you a little flavor, here are a few headlines just from the past month: