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Q3 2019 | Houston Office | Research & Forecast Report
1. Houston’s office market continues to see
expansion in the co-working niche
Research &
Forecast Report
HOUSTON | OFFICE
Q3 2019
Lisa Bridges Director of Market Research | Houston
Commentary by Taylor Wright
“Co-working” and, more specifically, WeWork continue to dominate
the CRE news cycle. With billion-dollar annual losses, the recent
withdrawal of their initial stock offering, the removal of the founder
as CEO and seemingly a different executive vacating every day,
both your average newsreader and our commercial real estate
colleagues are questioning the viability of WeWork specifically and
co-working in general. After meeting with different well-known
flex space operators and talking to landlord’s who lease space
to various co-working companies (not necessarily WeWork), our
view is a little more positive. The concept of co-working is nothing
new, but the way people and companies today are viewing their
workspace occupancy has definitely changed.
The total co-working footprint is miniscule in Houston’s overall
office occupancy (an estimated 1.3 million square feet out of 230.7
million total square feet). We believe co-working has a place in
occupancy solutions, albeit a relatively small one.
When discussing flex space operators with landlords, we hear
that they serve as a valuable building amenity. For example, in
the instances where tenants face a time crunch between vacating
their previous space and when a new space will be ready, co-
working space can serve as an effective stop-gap solution. When a
company has to staff up quickly for a short-term project, but does
not want to commit to long term space, co-working can meet those
requirements. Co-working space is also an effective solution for
employees who cannot justify a commute to the corporate office
5 days a week. These are just three examples of how co-working
space may be utilized. The concern and focus on WeWork may be
more of financial viability versus the core underlying offering. In a
booming economy, this niche should be enjoying financial success.
The concern has historically been what happens to these operators
in a downturn where “flex” space is the first to go. Every co-
working operator has filed bankruptcy at some point in their history.
WeWork made a huge splash entering the world market; let’s hope
that after the splash – they float.
With regards to the more traditional office market in Houston, we
Summary Statistics
Houston Office Market Q3 2018 Q2 2019 Q3 2019
Vacancy Rate 19.8% 19.9% 20.2%
Net Absorption 845,983 -919,041 -135,127
New Inventory 52,562 1,143,267 264,433
Under Construction 3,485,669 2,397,805 2,619,230
Class A Vacancy Rate
CBD
Suburban
22.1%
19.3%
19.6%
21.4%
19.4%
20.9%
Asking Rents
Per Square Foot Per Year
Houston Class A $35.74 $35.36 $35.07
CBD Class A $46.04 $46.01 $45.64
Suburban Class A $31.50 $31.99 $31.83
Market Indicators
Relative to prior period
Annual
Change
Quarterly
Change
Quarterly
Forecast*
VACANCY
NET ABSORPTION
NEW INVENTORY
UNDER CONSTRUCTION
*Projected
Share or view online at colliers.com/houston
2. 0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
CBD Vacancy Suburban Vacancy
2 Houston Research & Forecast Report | Q3 2019 | Office | Colliers International
see leasing activity concentrated in “pockets.” The Central Business District
reported minor positive absorption again in Q3, with 18,544 square feet absorbed.
Q2 recorded a much healthier 229,836 square feet absorbed Downtown.
Suburban Office (everything outside of Downtown) posted negative absorption
for the second straight quarter with -153,671 square feet following Q2’s negative
absorption of -1,148,877 square feet. The citywide vacancy has increased slightly
to 20.2%, as opposed to 19.9% in Q2. Asking rental rates for all classes has
remained relatively unchanged. Landlords continue to offer attractive tenant
improvement allowances and other concessions to maintain face rates.
The strategy that most of the Class A landlords have embraced is to upgrade
the older Class A product in order to slow the “flight to quality” that has tenants
embracing new construction and moving to the newer assets. This massive
capital investment should result in better occupancy, but we believe that there will
be very little upward pressure on lease rates in most submarkets. The Woodlands
and Sugar Land are the outliers in terms of market occupancy with vacancy
rates in the low teens. Tenants in those markets will see slightly less aggressive
positions from the landlord community, but in all markets, the tenant has the near-
term leverage.
Of the 1,672 existing office buildings in our survey, 80 buildings have 100,000 SF
or more contiguous space available for lease or sublease. Citywide, 6.8 million SF
Large Sublease Availabilities (Total available in building and/or complex)
BUILDING TENANT SUBMARKET SF
5 Greenway Plaza Oxy Greenway Plaza 746,070
Energy Tower II KTI Corporation (Technip) Katy Freeway 297,919
Hess Tower Hess Corporation CBD 215,887
Four WestLake Park BP Katy Freeway 212,626
Noble Energy Center II Noble Energy FM 1960 204,480
1500 Post Oak Blvd BHP Billiton Petroleum West Loop 204,417
Twelve Greenway Plaza CPL Energy Greenway Plaza 201,554
GreenStreet Tower Reliant Energy Retail CBD 194,768
1100 Louisiana Enbridge CBD 179,694
One Shell Plaza Shell Oil CBD 167,211
Westway Plaza GE Oil & Gas West Belt 131,663
Kinder Morgan Building EP Energy Corporation CBD 124,600
10000 Richmond Ave National Oilwell Varco Westchase 118,215
Source: CoStar
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Q1
2014
Q3
2014
Q1
2015
Q3
2015
Q1
2016
Q3
2016
Q1
2017
Q3
2017
Q1
2018
Q3
2018
Q1
2019
Q3
2019
Class A Class B Houston Total
Job Growth & Unemployment
(not seasonally adjusted)
UNEMPLOYMENT 8/18 8/19
HOUSTON 4.4% 3.9%
TEXAS 4.0% 3.6%
U.S. 3.9% 3.8%
JOB GROWTH
Annual
Change
# of Jobs
Added
HOUSTON 2.7% 81.9K
TEXAS 2.3% 292.2K
U.S. 1.4% 2.1M
CBD vs. Suburban
CLASS A OFFICE VACANCY
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
CBD Rents Suburban Rents
CLASS A OFFICE RENTS
HISTORICAL AVAILABLE SUBLEASE SPACE
AVAILABLE SUBLEASE SPACE - 100,000 SF OR GREATER
3. 33 Houston Research & Forecast Report | Q3 2019 | Office | Colliers International
Absorption & Demand
Houston’s office market posted negative net absorption of 135,127 SF in the third quarter, a huge improvement from the 919,041 SF of
negative net absorption posted in the second quarter. Year-to-date net absorption stands at negative 549,519 SF. Suburban Class A space
recorded the largest loss, posting 213,110 SF of negative net absorption, while CBD Class A space reported the largest gain posting 76,454
SF of positive net absorption. The majority of negative absorption was caused by Southwestern Energy placing the South Tower of it’s
corporate offices located in Springwoods Village in The Woodlands submarket on the market. Looking forward, our forecast shows positive
absorption in the fourth quarter as tenants take possession of spaces leased earlier in the year.
Rental Rates
Houston’s average asking rental rate decreased over the quarter from $29.64 per SF to $29.55 per SF. The average asking rental rate for
Class A space decreased over the quarter from $35.36 per SF to $35.07 per SF, and the average CBD Class A rental rate fell from $46.01
to $45.64 per SF. The Suburban average asking rental rate for Class A dropped from $31.99 to $31.83 per SF.
Leasing Activity
Houston’s office leasing activity decreased over the quarter from 4.2M SF to 3.3M SF. Leasing activity includes new/direct, sublet,
renewals, expansions in existing buildings and pre-leasing in proposed buildings. Some of the more notable transactions are listed in the
table below.
of sublease space is listed and 3.6 million SF of the space is vacant. The largest available sublease space currently occupied by Occidental
Petroleum Corporation may be withdrawn soon as their previous plans to relocate to the Energy Corridor have changed according to a
statement by CFO Cedric Burgher. Available space differs from vacant space in that it includes space that is currently being marketed for
lease, but may be occupied with a future availability date.
Q3 2019 Select Office Lease Transactions
BUILDING NAME/ADDRESS SUBMARKET SF TENANT LEASE DATE
Energy Center I Katy Freeway 156,828 Kiewitt Engineering1
Jul-19
BHP Billiton Tower West Loop/Galleria 109,667 Engie1
Jul-19
4800 Fournace Place Bellaire 100,812 Houston Methodist Hospital1,3
Aug-19
BHP Petroleum West Loop/Galleria 68,139 Sumitomo Corp2
Aug-19
910 Louisiana CBD 32,000 Ontellus2
Aug-19
1
New/Direct 2
Sublease 3
Colliers International Transaction
Sales Activity
Houston’s office investment sales volume decreased over the quarter from $730.9M in Q2 2019 to $274.1M in Q3 2019. The average sales
price per square foot trended up from $147 to $162 per SF over the quarter. Houston’s average cap rate of 7.8% lags the average U.S. cap
rate of 6.7%.
Sources: CoStar and Real Capital Analytics
$0
$50
$100
$150
$200
$250
$300
$350
United States Houston
AVERAGE OFFICE SALES PRICE PER SF
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
United States Houston
AVERAGE OFFICE CAP RATE
4. 4 Houston Research & Forecast Report | Q3 2019 | Office | Colliers International
Houston Office Market Summary (CBD, Suburban, & Overall)
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q3-2019 Q2-2019 Q3-2019 Q2-2019
AVG
($/SF)
CBD
A 36 33,862,459 5,792,269 17.1% 783,432 2.3% 6,575,701 19.4% 19.6% 76,454 305,322 $45.64
B 30 8,541,395 2,881,796 33.7% 108,297 1.3% 2,990,093 35.0% 34.3% -57,910 -75,486 $30.95
C 10 684,903 76,500 11.2% 0 0.0% 76,500 11.2% 11.2% 0 0 $17.61
Total 76 43,088,757 8,750,565 20.3% 891,729 2.1% 9,642,294 22.4% 22.4% 18,544 229,836 $40.56
SUBURBAN
A 399 98,124,892 18,949,694 19.3% 2,009,645 2.0% 20,959,339 21.4% 20.9% -213,110 -33,362 $31.83
B 921 76,451,207 13,825,442 18.1% 428,903 0.6% 14,254,345 18.6% 18.6% 22,576 -832,467 $20.48
C 276 13,025,557 1,604,593 12.3% 24,625 0.2% 1,629,218 12.5% 11.7% 36,863 -283,048 $20.68
Total 1596 187,601,656 34,379,729 18.3% 2,463,173 1.3% 36,842,902 19.6% 19.4% -153,671 -1,148,877 $26.75
OVERALL
A 435 131,987,351 24,741,963 18.7% 2,793,077 2.1% 27,535,040 20.9% 20.6% -136,656 271,960 $35.07
B 951 84,992,602 16,707,238 19.7% 537,200 0.6% 17,244,438 20.3% 20.2% -35,334 -907,953 $22.29
C 286 13,710,460 1,681,093 12.3% 24,625 0.2% 1,705,718 12.4% 11.7% 36,863 -283,048 $20.54
Total 1672 230,690,413 43,130,294 18.7% 3,354,902 1.5% 46,485,196 20.2% 19.9% -135,127 -919,041 $29.55
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q3-2019 Q2-2019 Q3-2019 Q2-2019
AVG
($/SF)
ALLEN PARKWAY (MIDTOWN)
A 9 2,319,982 363,595 15.7% 2,459 0.1% 366,054 15.8% 15.7% 28,042 20,389 $34.13
B 34 2,694,497 319,453 11.9% 20,254 0.8% 339,707 12.6% 14.0% 38,081 -50,054 $26.26
C 12 385,055 102,953 26.7% 0 0.0% 102,953 26.7% 27.5% 2,981 -11,000 $29.54
Total 55 5,399,534 786,001 14.6% 22,713 0.4% 808,714 15.0% 12.8% 69,104 -40,665 $30.33
BAYTOWN
B 2 114,474 11,668 10.2% 0 0.0% 11,668 10.2% 6.0% -4,827 -980 $21.45
C 2 41,208 10,513 25.5% 0 0.0% 10,513 25.5% 25.5% 0 0 -
Total 4 155,682 22,181 14.2% 0 0.0% 22,181 14.2% 4.1% -4,827 -980 $21.45
BELLAIRE
A 6 1,173,781 114,154 9.7% 38,889 3.3% 153,043 13.0% 10.2% -33,826 9,733 $29.09
B 15 1,712,113 61,989 3.6% 0 0.0% 61,989 3.6% 4.1% 7,451 17,156 $23.16
C 5 283,569 28,304 10.0% 0 0.0% 28,304 10.0% 10.0% -72 -480 $18.09
Total 26 3,169,463 204,447 6.5% 38,889 1.2% 243,336 7.7% 8.4% -26,447 26,409 $25.77
CONROE AND OUTLYING MONTGOMERY CO
A 2 107,161 28,449 26.5% 0 0.0% 28,449 26.5% 26.5% 0 0 $23.53
B 9 364,423 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $18.00
C 6 247,634 5,295 2.1% 0 0.0% 5,295 2.1% 2.5% 840 2,407 $21.60
Total 17 719,218 33,744 4.7% 0 0.0% 33,744 4.7% 1.8% 840 2,407 $23.23
E. FORT BEND CO SUGAR LAND
A 17 3,404,208 308,286 9.1% 59,091 1.7% 367,377 10.8% 11.6% 26,598 -96,568 $31.47
B 36 2,123,524 293,783 13.8% 17,157 0.8% 310,940 14.6% 14.3% -7,081 18,989 $24.87
C 3 69,411 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -
Total 56 5,597,143 602,069 10.8% 76,248 1.4% 678,317 12.1% 10.3% 19,517 -77,579 $28.25
Houston Suburban Office Market Summary
6. 6 Houston Research & Forecast Report | Q3 2019 | Office | Colliers International
Houston Suburban Office Market Summary - Continued
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL
(SF)
(SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q3-2019 Q2-2019 Q3-2019 Q2-2019
AVG
($/SF)
NORTHWEST AND NORTHWEST OUTLIER
A 9 1,985,781 750,930 37.8% 1,203 0.1% 752,133 37.9% 40.1% 45,017 -17,579 $24.48
B 74 5,632,104 1,021,963 18.1% 0 0.0% 1,021,963 18.1% 18.0% -7,183 -27,453 $19.11
C 33 1,656,677 76,521 4.6% 0 0.0% 76,521 4.6% 5.1% 7,780 -16,633 $15.25
Total 116 9,274,562 1,849,414 19.9% 1,203 0.0% 1,850,617 20.0% 20.0% 45,614 -61,665 $21.13
RICHMOND FOUNTAINVIEW
B 13 773,830 120,037 15.5% 0 0.0% 120,037 15.5% 14.7% -6,492 -20,686 $17.06
C 10 392,300 9,224 2.4% 0 0.0% 9,224 2.4% 1.1% -5,060 18,755 $17.61
Total 23 1,166,130 129,261 11.1% 0 0.0% 129,261 11.1% 12.7% -11,552 -1,931 $17.10
SAN FELIPE VOSS
A 3 1,720,793 396,382 23.0% 0 0.0% 396,382 23.0% 23.3% 4,028 475 $36.73
B 33 3,389,485 631,320 18.6% 33,453 1.0% 664,773 19.6% 20.1% 15,604 -47,143 $25.18
Total 36 5,110,278 1,027,702 20.1% 33,453 0.7% 1,061,155 20.8% 22.0% 19,632 -46,668 $29.63
SOUTH
B 11 331,493 29,534 8.9% 0 0.0% 29,534 8.9% 8.1% 19,490 4,618 $27.12
C 4 165,387 23,550 14.2% 0 0.0% 23,550 14.2% 14.2% 0 0 $28.16
Total 15 496,880 53,084 10.7% 0 0.0% 53,084 10.7% 8.0% 19,490 4,618 $27.26
SOUTH MAIN MEDICAL CENTER
B 10 786,887 151,380 19.2% 1,500 0.2% 152,880 19.4% 18.1% -10,166 -19,270 $20.38
C 7 364,008 46,782 12.9% 0 0.0% 46,782 12.9% 12.9% 281 8,961 $19.68
Total 17 1,150,895 198,162 17.2% 1,500 0.1% 199,662 17.3% 9.7% -9,885 -10,309 $16.65
SOUTHEAST
B 14 1,142,804 29,799 2.6% 0 0.0% 29,799 2.6% 0.5% -23,785 -1,133 $19.91
C 1 22,220 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $0.00
Total 15 1,165,024 29,799 2.6% 0 0.0% 29,799 2.6% 8.1% -23,785 -1,133 $15.91
SOUTHWEST
A 6 1,586,913 494,445 31.2% 0 0.0% 494,445 31.2% 28.0% -50,366 6,309 $17.35
B 62 6,053,095 1,332,951 22.0% 59,748 1.0% 1,392,699 23.0% 22.8% -13,425 -11,020 $15.95
C 29 1,415,536 69,723 4.9% 2,971 0.2% 72,694 5.1% 5.4% 4,105 -2,332 $12.68
Total 97 9,055,544 1,897,119 20.9% 62,719 0.7% 1,959,838 21.6% 19.3% -59,686 -7,043 $16.19
SOUTHWEST FAR AND OUTLIER
A 2 158,720 19,737 12.4% 0 0.0% 19,737 12.4% 12.4% 0 0 $0.00
B 11 849,340 209,564 24.7% 0 0.0% 209,564 24.7% 24.7% 0 -814 $0.00
C 3 91,661 7,000 7.6% 0 0.0% 7,000 7.6% 7.6% 0 0 $0.00
Total 16 1,099,721 236,301 21.5% 0 0.0% 236,301 21.5% 22.9% 0 -814 $26.23
THE WOODLANDS
A 57 13,164,376 1,094,444 8.3% 121,508 0.9% 1,215,952 9.2% 7.1% -235,863 90,598 $37.10
B 63 4,292,601 424,375 9.9% 39,183 0.9% 463,558 10.8% 9.6% -49,557 19,901 $28.52
C 6 169,558 500 0.3% 0 0.0% 500 0.3% 0.3% 0 -500 $18.61
Total 126 17,626,535 1,519,319 8.6% 160,691 0.9% 1,680,010 9.5% 9.2% -285,420 109,999 $34.70
WEST BELT
A 29 3,738,419 693,697 18.6% 43,321 1.2% 737,018 19.7% 21.2% 56,195 56,146 $28.67
B 36 2,021,674 324,279 16.0% 75,954 3.8% 400,233 19.8% 21.1% 26,788 -4,902 $22.07
C 4 112,629 0 0.0% 20000 17.8% 20,000 17.8% 17.8% 0 -10,000 -
Total 69 5,872,722 1,017,976 17.3% 139,275 2.4% 1,157,251 19.7% 28.8% 82,983 41,244 $26.57
7. 7 Houston Research & Forecast Report | Q3 2019 | Office | Colliers International7
Office Development Pipeline
2.6 million SF of office space is under construction and approximately 40.4% is pre-leased. 2.1 million SF is spec development of which
23.1% is pre-leased. Below is a summary of the office buildings under construction with a GBA of 100,000 SF or greater.
BUILDING NAME ADDRESS SUBMARKET SF
PRE-
LEASED
DEVELOPER/CONTRACTOR
EST.
DELIVERY
Texas Tower 845 Texas Ave CBD 1,123,699 34.5% Hines Securities, Inc. Oct-21
Insperity Campus Building 5 US-59 N & Kingwood Dr. Kingwood/Humble 270,000 100% Insperity with D E Harvey Cleary Jun-20
Park Place | River Oaks 4200 Westheimer West Loop 207,202 13.8% Stonelake Capital Partners Mar-20
Alight Solutions 8770 New Trails Dr The Woodlands 180,000 100%
The Woodlands Development
Company LP
Feb-20
Katy Ranch Phase II 24279 Katy Fwy Katy/Grand Pkwy West 150,900 0% Freeway Properties Aug-20
Village Plaza I 9655 Katy Freeway Katy Freeway 150,000 7.3% Moody National Companies Jul-20
Post Houston 401 Franklin St CBD 150,000 19.3% Lovett Commercial Aug-20
Research Forest Lakeside 9 9709 Lakeside Blvd The Woodlands 134,938 0% Warmack Investments Aug-20
Houston Suburban Office Market Summary - Continued
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL
(SF)
(SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q3-2019 Q2-2019 Q3-2019 Q2-2019
AVG
($/SF)
WEST LOOP
A 51 18,186,304 3,364,429 18.5% 318,678 1.8% 3,683,107 20.3% 19.0% -221,718 83,668 $37.90
B 49 5,472,044 695,912 12.7% 57,613 1.1% 753,525 13.8% 13.2% -32,332 -169,750 $26.54
C 4 216,268 13,163 6.1% 0 0.0% 13,163 6.1% 5.1% -2,159 893 $19.50
Total 104 23,874,616 4,073,504 17.1% 376,291 1.6% 4,449,795 18.6% 18.9% -256,209 -85,189 $35.90
WESTCHASE
A 32 9,277,659 1,965,285 21.2% 416,954 4.5% 2,382,239 25.7% 26.2% 50,458 38,558 $32.91
B 62 7,600,151 1,522,356 20.0% 18,748 0.2% 1,541,104 20.3% 20.2% -7,956 23,759 $22.05
C 4 147,000 8,802 6.0% 0 0.0% 8,802 6.0% 6.9% 1,391 0 $15.00
Total 98 17,024,810 3,496,443 20.5% 435,702 2.6% 3,932,145 23.1% 19.8% 43,893 62,317 $28.65
2 31
600 TRAVIS
600 Travis Street
1,656,529 / 22,575 / 75
85.3%
569,106
192,461
$43.40
1.0
Texas Tower Ltd
717 TEXAS
717 Texas Avenue
697,195 / 21,127 / 33
53.5%
315,532
273,174
$45.75
1.3
Hines
BANK OF AMERICA CENTER
700 Louisiana Street
1,268,480 / 25,000 / 56
75.8%
318,420
83,381
$45.81
2.0
M-M Properties
BUILDING NAME
ADDRESS
RBA / AVG FLOOR / # OF FLOORS
% LEASED
TOTAL AVAILABLE SF
MAX CONTIGUOUS SF
QUOTED RATE**
PARKING RATIO
OWNER
AVAILABLE* SUBLEASE*
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
TWO ALLEN CENTER
1200 Smith Street
995,623 / 26,613 / 36
91.7%
454,401
171,358
$45.62
1.0
Brookfield Office
Properties, Inc.
THREE ALLEN CENTER
333 Clay Street
1,194,719 / 25,000 /50
92.1%
308,606
25,303
$46.74
1.0
Brookfield Office
Properties, Inc.
1100 LOUISIANA
1100 Louisiana Street
1,327,882 / 23,060 / 55
99.7%
330,604
300,947
$42.36
1.8
Enterprise Products
Partners L.P.
HERITAGE PLAZA
1111 Bagby Street
1,212,895 / 26,652 / 51
100%
29,295
29,295
$52.76
2.4
Brookfield Office
Properties, Inc.
CENTERPOINT ENERGY
1111 Louisiana Street
1,081,251 / 22,968 / 47
100%
0
0
N/A
2.5
CenterPoint Energy, Inc.
ONE ALLEN CENTER
500 Dallas Street
993,297 / 29,214 / 34
84.7%
192,701
70,171
$46.51
1.0
Brookfield Office
Properties, Inc.
KINDER MORGAN BLDG.
1001 Louisiana Street
937,003 / 28,510 / 32
100%
124,600
124,600
N/A
1.0
Kinder Morgan, Inc.
TOTAL PLAZA
1201 Louisiana Street
843,533 / 24,600 / 35
97.7%
28,426
8,867
$43.80
1.0
Brookfield Office
Properties, Inc.
1918 2322 262120 24 25
WELLS FARGO PLAZA
1000 Louisiana Street
1,721,242 / 25,000 / 71
76.6%
491,257
101,773
$49.65
1.7
New York State Common
Retirement Fund
BUILDING NAME
ADDRESS
RBA / AVG FLOOR / # OF FLOORS
% LEASED
TOTAL AVAILABLE SF
MAX CONTIGUOUS SF
QUOTED RATE**
PARKING RATIO
OWNER
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
811 MAIN STREET
811 Main Street
972,474 / 27,000 / 46
100%
80,006
80,006
$51.91
1.2
Invesco Advisers, Inc.
ONE SHELL PLAZA
910 Louisiana Street
1,228,923 / 24,572 / 50
88.8%
364,830
125,887
$45.24
0.3
Busycon Properties LLC
NORTH BLDG
700 Milam Street
694,021 / 20,523 / 36
65.5%
232,193
142,954
$44.95
3.0
Metropolis Investment
Holdings Inc.
2 HOUSTON CENTER
909 Fannin Street
1,024,956 / 25,624 / 40
74.9%
275,527
70,144
$43.93
1.0
Brookfield Asset
Management Inc.
LYONDELLBASELL TOWER
1221 McKinney Street
1,065,215 / 24,000 / 46
90.7%
193,009
94,080
$45.20
1.0
Brookfield Asset
Management Inc.
811 LOUISIANA
811 Louisiana Street
588,423 / 31,500 / 26
59.9%
232,739
114,504
$41.38
2.0
Busycon Properties LLC
SOUTH BLDG
711 Louisiana Street
666,762 / 20,000 / 34
74.7%
306,546
207,758
$44.95
3.0
Metropolis Investment
Holdings Inc.
FULBRIGHT TOWER
1301 McKinney Street
1,247,061 / 24,452 / 51
71.2%
439,475
75,376
$44.32
1.0
Brookfield Asset
Management Inc.
5 HOUSTON CENTER
1401 McKinney Street
580,875 / 29,649 / 27
67.5%
198,806
124,756
$50.00
2.0
Spear Street Capital
1110 13124 5 96 7PENNZOIL PLACE
609 MAIN at TEXAS
609 Main Street
1,057,237 / 28,000 / 48
92.6%
81,961
28,337
$52.00
1.7
Hines
8
ONE CITY CENTRE
1021 Main Street
608,660 / 21,266 / 29
77.3%
424,260
187,693
$30.61
2.3
Accesso Partners, LLC
1000 MAIN
1000 Main Street
837,161 / 23,333 / 36
80.2%
204,952
144,394
$52.06
2.0
Union Investment
Real Estate
1001 FANNIN
1001 Fannin Street
1,385,212 / 27,210 / 49
95.1%
629,424
393,634
$44.97
1.0
JMB Financial Advisors
171514
HILCORP ENERGY TOWER
1111 Main Street
406,600 / 17,678 / 23
95.7%
0
0
N/A
N/A
Hilcorp Ventures Inc.
16
CLASS A OFFICE BUILDINGS
CENTRAL BUSINESS DISTRICT HOUSTON, TEXAS
AUGUST 2019
393,634 SF
Available
Nov 2021
187,693 SF
Available
Jan 2021
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
$36.00
$38.00
$40.00
$42.00
$44.00
$46.00
$48.00
Class A Rental Rate and Vacancy Percentage
Central Business District - Houston, TX
CBD Class A Rents CBD Class A Vacancy
*Vacancy percentage includes direct and sublease space.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Available Direct Space
Central Business District
Class A Class B
Available Direct Space
Q2 2019
Class A: 8,240,382 SF or 24.2%
Class B: 3,073,073 SF or 32.6%
0
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Available Sublease Space
Central Business District
Class A Class B
Available Sublease Space
Q2 2019
Class A: 1,330,515 SF or 3.9%
Class B: 198,885 SF or 2.1%
AVAILABLE* SUBLEASE*
BUILDING NAME
ADDRESS
RBA / AVG FLOOR / # OF FLOORS
% LEASED
TOTAL AVAILABLE SF
MAX CONTIGUOUS SF
QUOTED RATE**
PARKING RATIO
OWNER
1500 LOUISIANA
1500 Louisiana Street
1,157,690 / 25,263 / 40
100%
0
0
N/A
1.1
ChevronTexaco Corp.
1301 FANNIN OFFICE TOWER
1301 Fannin Street
784,143 / 26,000 / 24
75.8%
131,334
67,544
$38.63
1.0
Netrality Properties
1400 SMITH
1400 Smith Street
1,250,677 / 25,013 / 50
100%
0
0
N/A
N/A
Chevron Corporation
1600 SMITH
1600 Smith Street
1,098,399 / 23,000 /51
52.9%
517,327
351,741
$37.44
1.0
Brookfield Office Properties, Inc.
WEDGE INT’L TOWER
1415 Louisiana Street
520,475 / 18,000 / 43
48.6%
281,910
119,708
$32.11
2.7
Wedge Group, Inc.
HESS TOWER
1501 McKinney Street
844,763 / 30,500 /29
100%
215,887
215,887
N/A
1.7
H&R REIT
GreenStreet
1201 Fannin Street
275,223 / 25,020 / 11
100%
194,768
194,768
N/A
1.5
Midway Companies/
Lionstone Investments
29 3027 3128 32 33
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75 CLASS A OFFICE BUILDINGS
CENTRAL BUSINESS DISTRICT HOUSTON, TEXAS
AUGUST 2019
28
2
3
4 5
1
10
9
7
6
8
27
1716
15
14
25
21
20
29
24
26
19
12
18
13
11
22
2330
31
32
33
*Gold and white indicators are approximate only at the time of printing and are presented to show approximate percentage of available
space by floor/building. All indicators are left-to-right and are not meant to show location of available space.
**Rental rates listed are net + operating expenses.
COLLIERS INTERNATIONAL
1233 West Loop South, Suite 900
Houston, TX 77027
www.colliers.com/texas
Skylines | Now Available Online at colliers.com/houston
A skyline view of available space for nine of Houston’s Class A office submarkets including the CBD, Galleria, Energy Corridor, Greenway
Plaza, NASA/Clear Lake, North Belt, Sugar Land, The Woodlands and Westchase, is now available online.
9. Our philosophy
revolves around the fact
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possible results come
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understand your
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and how to
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into a successful
business strategy.
C O L L I E R S I N T E R N A T I O N A L G L O B A L L O C A T I O N S
COMMERCIAL REAL ESTATE SECTORS REPRESENTED
OFFICE
INDUSTRIAL
LAND
RETAIL
HEALTHCARE
MULTIFAMILY
HOTEL
$127BTRANSACTION VALUE
2BSF UNDER MANAGEMENT
$3.3BIN REVENUE
438OFFICES
17,300PROFESSIONALS
340ACCREDITED MEMBERS
68COUNTRIES
SIOR
ADVANTAGE
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services
and investment management company. With operations in 68 countries, our 14,000
enterprising people work collaboratively to provide expert advice and services to
maximize the value of property for real estate occupiers, owners and investors. For
more than 20 years, our experienced leadership team, owning more than 40% of our
equity, have delivered industry-leading investment returns for shareholders. In 2018,
corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than
$26 billion of assets under management.
Colliers professionals think differently, share great ideas and offer thoughtful and
innovative advice to accelerate the success of its clients. Colliers has been ranked
among the top 100 global outsourcing firms by the International Association of
Outsourcing Professionals for 13 consecutive years, more than any other real estate
services firm. Colliers is ranked the number one property manager in the world by
Commercial Property Executive for two years in a row.
PROPERTY POSITIONING
& MARKETING
REAL ESTATEINVESTMENT
VALUATION&
ADVISORY
CORPORATE
SOLUTIONS
MANAGEMENT
REALESTATE
REPRESENTATION
LANDLORD
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INTELLIGENCE
M
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PROJECT
MANAGEMENT
COLLIERS
SPECIALIZATIONS
and
REAL ESTATE SERVICE
REPRESENTATION
DATACENTERS
HE
ALTHCARE
HOTELS & HOSPITALITY SERVICES
IN
DUSTRIAL
LAND
HOUSING&MULTIFAMILY
SER
VICES
MARINA, LEISURE & GOLF COURSE
OFFICE
RETAIL
SPECIALPURPOSE