Class A properties in Houston continue to be top pick for tenants3 Oct 2019
Avison Young releases its Third Quarter 2019 Houston Office Market Report
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Houston, TX — According to Avison Young’s Third Quarter 2019 Office Market Report for Houston, the city’s market returned to positive absorption levels after experiencing losses in the previous quarter. Direct net absorption returned to a positive 327,151 square feet (sf).
“The local employment growth has been an economic bright spot for Houston,” notes Rand Stephens, Avison Young Principal and Managing Director of the company’s Houston office. “Larger tenants may be downsizing their space and leaning towards efficiency, but they are not downsizing their employee numbers.”
According to the report, the direct vacancy rate was a repeat of the previous quarter’s 16.4%, but it is a drop from the year-over-year rate of 16.9%. Overall, the third quarter has shown relaxed leasing activity, a limited construction pipeline and a minimal dip in average asking rates.
“As tenants continue to be lured by the class A properties, class B owners are making upgrades and ramping up their amenities,” comments Avison Young Principal Charlie Neuhaus. “If this trend continues, tenants could potentially get a lot more bang for their buck. The slowdown in the market continues to benefit tenants.”