RESEARCH & FORECAST REPORT
Q4 HOUSTON OFFICE MARKET | WEEK OF JANUARY 2, 2012
Houston’s Office Market Ends 2011 on a Positive Note
Houston’s office market has undergone significant
changes in the past twelve months benefiting from positive absorption,
falling vacancy, and rising rental rates. Increased leasing activity
has been key to the year-end positive net absorption of 2.6 million
square feet citywide. An important driver of these market trends has
been a healthy economic climate conducive to increased business
activity. The Houston metropolitan area has gained about 77,000 jobs
through November 2011,
representing a solid 3.0% growth rate.
Overall vacancy levels decreased by 50 basis points
between quarters to 15.5% from 16.0%, which was also the citywide
overall vacancy rate one year ago.
The average suburban vacancy rate decreased by 30 basis points
to 15.3% from 15.6% the previous quarter, while the CBD vacancy rate
decreased by 100 basis points to 16.6% from 17.6%.
On a year-over-year basis the citywide average rental rate
increased by $0.12 per square foot to $23.20 from $23.08 per square
foot. The citywide average rental rate also rose slightly between
quarters to $23.20 from $22.93 per square foot.
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to access the full Q4 Houston Office Market Research & Forecast
For further information, please
Lisa Bridges, Director of Market
Houston, Colliers International
713 830 2125