Avison Young releases Fourth Quarter 2020 Market Reports for Houston industrial and office sectors4 Jan 2021
Largest square footage completions during a single year for industrial sector
Houston, TX – Avison Young today released both its Fourth Quarter 2020 Office Market Report and Industrial Market Report for Houston. The industrial sector shattered last year’s development record of 15.4 million square feet (msf) by completing 26.5 msf during 2020, the most industrial square footage delivered during a one-year period in Houston’s history. The office market still faces challenges created by the pandemic and lackluster energy sector.
“Office tenants continued to benefit from concession packages that included lengthy rent abatements, large improvement allowances and significant amounts of free parking,” comments Anthony Squillante, Principal in the firm’s Houston office. “Also, as landlords of all building classifications including owners of class A buildings seek to capture demand, flight to quality is expected to remain a strong factor for companies pursuing newer and upgraded buildings.”
“Houston’s industrial market ended the year on a strong note with record-breaking completions,” commented Drew Coupe, a Vice President in the firm’s Houston office specializing in industrial tenant representation. “Supply surplus has given tenants an advantage as landlords continue to offer enticing concession packages with up to 10-month rent abatements on long-term deals, plus allowances for tenant improvements.”
Despite Houston’s soft office market, office users from around the country recognize the favorable business climate and diverse talent pool that is offered here, making Houston an attractive and viable option for a multitude of industries.
Download quarterly market reports:
Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. As a private company, our clients collaborate with an empowered partner who is invested in their success. Our integrated talent realizes the full potential of real estate by using global intelligence platforms that provide clients with insights and advantage. Together, we can create healthy, productive workplaces for employees, cities that are centers for prosperity for their citizens, and built spaces and places that create a net benefit to the economy, the environment and the community.
Avison Young is a 2020 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for nine consecutive years.