Monthly Market Snapshot

Houston Office

Monthly Market Snapshot


AUGUST 2017

Market Highlights

Houston’s office market may be down, but not out. Houston’s overall vacancy rate rose to 20.6% as of the end of July, an increase of 10 basis points from Q2 2017. Available sublease space decreased slightly but this was largely due to lease terms expiring and space being returned to the landlord for direct marketing. The lion's share, or 42% of the sublease space in the market, currently has a one- to 36-month term remaining. Terms over 36 months make up 23% of the sublease space, and 35% is represented by a negotiatiable period.

There is some relief to the oversupply. Though several tenants in the market are looking for new state-of-the-art space, the amount in the construction pipeline is slowing down. Currently, there is approximately 2.5 million sq. ft. underway, down 78.5% since Q3 2014, when the oil downturn began to become evident in the office market.

The “city within a city,” Houston Center deal has investors’ attention. The four-building, 4.2 million-sq.-ft. complex in Downtown recently went on the market, causing a frenzy of activity from interested stakeholders ranging from longtime local, first-time national, and foreign investors. Dan Boyles, a partner at our firm, said whoever buys the properties will have to invest a significant amount of capital, in order to compete with the newer Class A projects Downtown.

Don’t be crude. West Texas Intermediate, traded between $44.25 and $50.17 a barrel in July 2017, slightly higher than $41.13 to $47.37 in July 2016. The U.S. Energy Information Administration estimates WTI to average $48 through the remainder of the year.

Research Snapshot Houston Office

Research Snapshot Houston Office

Research Snapshot Houston Office

 

Leta Wauson
Director of Research
leta.wauson@naipartners.com
tel 713 275 9618

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Quarterly Reports

HOUSTON

Q2 2017 Office Market Report

Q2 2017 Industrial Market Report

Q2 2017 Retail Market Report

SAN ANTONIO

Q2 2017 Office Market Report

Q2 2017 Industrial Market Report

AUSTIN

Q2 2017 Office Market Report

Q2 2017 Industrial Market Report

 

Industrial Submarket Spotlight

Houston Northwest Submarket July 2017

Houston Southeast Submarket June 2017

 

Office Submarket Spotlight

San Antonio Northwest Submarket August 2017

 

Sublease Digest

Houston Office July 2017

Houston Office June 2017

Houston Office May 2017

Houston Office April 2017

Houston Office March 2017

Houston Industrial March 2017

 

Monthly Snapshots

HOUSTON

Houston Office August 2017

Houston Industrial August 2017

Houston Retail August 2017

AUSTIN

Austin Office August 2017

Austin Industrial August 2017

SAN ANTONIO

San Antonio Office June 2017

San Antonio Industrial June 2017

 

Market Insight

Market Insight

 

Monthly Snapshots (Historical)

 

Houston Office June 2017

Houston Industrial June 2017

 

Houston Retail June 2017

Houston Retail March 2017

Houston Office March 2017

Houston Industrial March 2017

 

San Antonio Office May 2017

San Antonio Industrial May 2017

 

Austin Office June 2017

 

Austin Industrial June 2017

 

Data InSight

Data InSight

 

Quarterly Reports (Historical)

HOUSTON

Q1 2017 Office Market Report

Q1 2017 Industrial Market Report

Q4 2016 Office Market Report

Q1 2017 Retail Market Report

 

SAN ANTONIO

Q1 2017 Office Market Report

 

​Q1 2017 Industrial Market Report

AUSTIN

Q1 2017 Office Market Report

Q1 2017 Industrial Market Report

 

SoundBytes

May 22, 2017

May 11, 2017

April 20, 2017

March 28, 2017

 

Resources

I-35 Corridor Activity Map

The New #CREcosystem Refresh - featuring contributions from Larry Koestler, VP of Marketing