Avison Young releases its First-Quarter 2020 Houston Office Market Report2 Apr 2020
Construction pipeline is expanding with 3.8 msf in production
Download Houston Office Market Report Q1 2020
Houston, TX — According to Avison Young’s First-Quarter 2020 Office Market Report for Houston, all class property types in the city experienced losses during the first quarter, but suburban class A properties reported positive absorption with 124,310 square feet (sf).
“Prior to the pandemic, Houston’s economic fundamentals were healthy, but the energy sector’s recovery struggles have now been compounded with an oil price war,” notes Rand Stephens, Avison Young Principal and Managing Director of the firm’s Houston office. “It’s an uphill battle, but this is an interruption we will learn from and overcome.”
According to the report, the pipeline for construction is growing, although limited to 21 buildings totaling 3.8 million square feet (msf), 45% of it is currently preleased.
“These unprecedented times have slowed commerce to a near halt,” comments Avison Young Principal Anthony Squillante. “However, if tenants are willing and able to transact, landlords are likely to offer aggressive concession packages in response to social distancing and work-at-home orders in an effort to keep their building’s occupancy rate up.”
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, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 108 offices in 14 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.
Avison Young is a 2019 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for eight consecutive years.