Developers progressing with several medical office projects in Houston Medical Office market.
VACANCY AT 16.7% Overall vacancy for medical office space in the Houston market is at 16.7%, up slightly from 16.6% this time last year. In addition, office medical space recorded 359,000 sq. ft. of leasing activity—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) is at negative 29,000 sq. ft. So far this year, developments under construction stand at 864,000 sq. ft. The average asking full-service rent is at $25.77 per sq. ft., up 0.4% from last year at this time, while Class A medical office space is averaging $31.12 per sq. ft., down from the prior period at $31.34 per sq. ft. Houston Medical Center
HOUSTON METHODIST LISTS LARGE SUBLEASE SPACE Houston Methodist has put a significant block of office space in the Houston area on the sublease market after deciding to allow many employees to work remotely. The hospital system is listing 100,812 sq. ft. of office space in Bellaire on the sublease market. The space at 4800 Fournance Place had been planned for the information technology department of Houston Methodist until the pandemic hit and workers never moved in.
TOWER CONSTRUCTION AHEAD OF SCHEDULE The 364,000-sq.-ft. tower called Museo is located at 5115 Fannin St. and represents the first phase of a mixed-use project Testa Rossa Properties is developing with Dr. Mike Mann, founder of Houston’s Mann Eye Institute. Mann Eye Institute plans to occupy 37,162 sq. ft. on the 10th floor and 10,402 sq. ft. on the ninth floor, and Laparoscopic Consultants signed a lease for 10,256 sq. ft. The tower is expected to be complete this fall, which is several months ahead of schedule. Houston Medical Center
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