According to Bethesda, Maryland-based real estate information company CoStar Group Inc., Texas ranked third in the nation in the number of distressed properties, or properties that are currently 40 percent leased or less. The Lone Star State came in behind real estate-challenged California and Florida, respectively.
In the Houston market, Costar reported 901 distressed retail properties in the third quarter of 2009, a dramatic jump from 767 in the same quarter of 2008.
In the office segment, CoStar reported 51 distressed Class A buildings in the third quarter in Houston, up from 34 in the third quarter of 2008. Distressed Class B office buildings rose from 249 to 303 over the same time period. The numbers are even worse in the industrial building sector, with 689 Houston properties being classified as distressed last quarter, up from 489 in the year-ago period.