Houston office market construction pipeline shrinks seventy-three percent over the year
Houston’s office market continues to struggle due to the downturn in the energy industry, leading to negative net absorption and decreased leasing activity. Leasing activity has dropped by 28.6% since Q3 2015 and by 13.8% over the quarter. Tenants are renewing existing leases, but more companies continue to contract than expand.
Houston’s office market posted 0.4M SF of negative net absorption during the third quarter. Even with the positive absorption year-to-date, because of the additional space completed and added to the market, Houston’s city-wide office vacancy rate rose from 16.2% to 17.1% over the quarter, and the annual rate rose significantly, increasing by 260 basis points from 14.5% in Q3 2015.
Available sublease space has increased from 7.1M SF to…click here to visit our website and view the complete report.