Avison Young releases third quarter 2018 Houston office market report2 Nov 2018
Leasing activity jumps 36.3% from last quarter
Houston — The Houston office market recovery has been stimulated by improvements in market fundamentals, steady job growth and an upturn in the energy industry. The third quarter showed positive net absorption and a 36.3% increase in leasing activity from last quarter. The direct vacancy rate has remained unchanged since the beginning of 2018, and the combined vacancy rate including direct and sublease decreased slightly from 18.3% last quarter to 17.9% this quarter.
“The 2018 third quarter statistics are positive indicators that the office market is showings signs of incremental growth,” comments Avison Young Principal, Charlie Neuhaus. “The office market is taking a small step in the right direction, but landlords must be mindful that it is still a slow, tenant-centric market.”
Despite a slight increase in overall rental rates, tenants continue to have the upper hand due to the amount of availability in the market. According to the report, flight-to-quality along with mergers and consolidations are likely to keep availability high.
Links to report, stats and heat maps:
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,700 real estate professionals in 85 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial, multi-family and hospitality properties.