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Overall vacancy is up 90 basis points at 22.5% year-over-year— though only up 20 basis points from June —and availability is up 60 basis points to 26.7% compared to this time last year.
Vacancy and availability. Overall vacancy is up 90 basis points at 22.5% year-over-year— though only up 20 basis points from June —and availability is up 60 basis points to 26.7% compared to this time last year. The Houston office market has recorded 8.5 million sq. ft. of leasing activity—which is comprised of both new leases and renewals— while net absorption (move-ins minus moveouts) is at negative 1.7 million sq. ft., including negative 2.2 million sq. ft. of direct space and positive 457,000 sq. ft. of sublease space.
Global tax company relocates Houston office. Ryan LLC has leased 66,750 sq. ft. in Park Towers at 1233 W. Loop S. in Houston’s Galleria/West Loop submarket. The tax giant’s new office will be less than three miles of its current Houston office in Williams Tower at 2800 Post Oak where they occupy 45,000 sq. ft. The Galleria/ West Loop office market is about 21.9% vacant, 60 basis points lower than the metro average. More tenants have moved out of direct space than moved in this year, with negative absorption at about 511,000 sq. ft. year-to-date.
One-third of job losses recovered. The Federal Reserve Bank of Dallas reported that Houston showed more signs that the local economy improved or at least bottomed out in June. Houston added back more than 120,200 jobs over the two months through June 2020, nearly one third of the 361,900 payroll jobs lost in February and March. The biggest source of job growth was in hard-hit leisure and hospitality, which added 70,000 jobs (50% of its loss) as the phased reopening of the state economy allowed restaurants and bars to resume operation. In late June, as COVID-19 hospitalizations and deaths surged in the region, the state ordered a pullback in reopening that included a mandate that bars close again. This will likely show up in the July jobs report to be released next month.
Director of Research
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