Our just-released report on Houston Coworking has been featured in Forbes, in an article entitled Coworking Space Occupies Only 0.7% Of Houston Office Market, Report Finds. The story also quotes our own Dan Boyles on Houston Coworking heavily:
A less anecdotal assessment, by NAI Partners’ office market study of coworking space in Houston, finds the trending concept “continues to be a hot topic but is less pervasive than expected.”
The city’s current inventory of 115 coworking venues is dispersed around the metro area. Their combined space totals 1.5 million square feet, which the report ranks as “a mere” 0.7% of the 207 million square feet of office space in Houston’s 17 submarkets.
Dan Boyles, partner in NAI’s office tenant group, says the report explored a real estate segment getting a lot of attention from the industry and investors but lacking metro level data to track historically.
“The report dispels the myth,” he says.
As defined by the study, coworking properties encompass a variety of workspace delivery and workspace-use experiences, from a strictly open floor plan and “hot desking” model with community-building culture, to more traditional executive suites with assigned offices.
Coworking locations are starting to flourish near large employment centers around the city, especially where the urban density is increasing, Boyles notes. Ditto in the suburbs, which have a lot of office space—and room for more given the lack of physical barriers to growth, he says, something many large cities encounter.
Houston’s outlying southwest and northwest submarkets, for example, weigh in with 2.7% and 2.3% of coworking space, the report shows, with a majority of submarkets hovering below 1%. The NASA/Clear Lake submarket located southeast of downtown hovers at just under 2%.
Coworking properties appear to be attracting tenants at both ends of the scale spectrum, Boyles notes. Small users (such as startups, entrepreneurs and so-called “creatives”) are seeking short lease terms and synergy opportunities within collaborative environments. Larger companies are looking for turnkey office solutions, handy for getting satellite operations up and running.
“It’s still a fairly fragmented business,” Boyles says. “The traditional office will continue to dominate the market for the foreseeable future.”
About NAI Partners
Houston | Austin | San Antonio
NAI Partners is the 5th-largest Houston-Area Commercial Real Estate Brokerage, the #1 Mover of Square Feet among leasing and sales brokerages, the largest independently owned and among the largest owner-operated commercial real estate firms in Houston, Texas, per The Houston Business Journal. NAI Partners was founded and is headquartered in Houston and has offices in San Antonio and Austin; offers the geographic expertise to complete real estate transactions throughout the state of Texas; and can leverage the power of the NAI Global network to arrange deals in any location throughout the world. NAI Partners employs more than 100 real estate professionals, and arranges more transactions than any of its competitors, completing over 500 commercial lease and sale arrangements every year. NAI Partners is a full-service firm offering client leasing and sales solutions in the areas of office tenant representation, office landlord representation, industrial tenant representation, industrial landlord representation, landlord services, retail services, property management, investment sales, an investment fund, and project management, among other services. The company has been named a Best Place to Work by both the Houston Chronicle and Houston Business Journal, and is among the University of Houston’s Cougar 100 Fastest-Growing Companies.
Commercial real estate in Houston. NAI Partners offers full-service commercial real estate solutions to Houston, Austin and San Antonio, and has been serving the Houston commercial real estate needs of its clients for more than 20 years. We specialize in finding office space, industrial space and retail space, and can arrange an office lease, industrial lease or retail lease for your company. Our industrial brokers help tenants and landlords or property owners of any size find the perfect real estate space or location for their business needs.