Houston's office market continues to see strong growth, with over 17.8 million square feet currently under construction. Net absorption was positive 1.6 million square feet in Q2 2014, pushing the year-to-date net absorption to a positive 2.2 million square feet. The average rental rate increased 1% over the quarter to $26.52 per square foot, as the economy remains healthy due to job and energy sector growth.
Houston's office market had strong positive net absorption of 2.3 million square feet in Q1 2014, the highest since 2007. Vacancy rates declined slightly while rental rates increased across the market. Major energy companies are expanding and adding new office projects. The local economy is expected to remain strong in 2014 with continued healthy job and population growth.
Houston's office market saw modest growth in Q2 2013, with 286,000 SF of positive net absorption. Absorption was lower than the previous year's quarter but is expected to increase as new developments deliver space later in the year. The overall vacancy rate increased slightly to 14.9% while average rental rates rose to $24.26 per SF. Job and economic growth in Houston remained strong, led by expansion in the energy sector. New office developments totaling over 9 million SF are planned or under construction to accommodate ongoing corporate growth.
The document summarizes key office market indicators and trends for Houston, Texas in Q1 2015. Net absorption slowed to 1.2 million SF compared to 2.3 million SF in Q1 2014, while vacancy rates increased slightly. Rental rates remained relatively stable, increasing 0.9% citywide. Over 3.5 million SF of new inventory delivered during the quarter, with 68% pre-leased. The effects of lower oil prices are beginning to impact the Houston office market, as available sublease space increased 33% and job growth slowed compared to previous periods. However, vacancy rates remain moderate and most proposed construction projects have been put on hold, which should help stabilize the market.
The Houston office market summary provides an overview of key indicators in Q3 2014. Net absorption was 420k SF, pushing the year-to-date total to 4.4M SF. The average citywide vacancy rate increased slightly to 11.9% while average rental rates rose to $26.94 per SF. Strong job and economic growth are expected to continue driving demand in the Houston market through the end of 2014.
Houston's office market saw strong absorption in Q4 2013, pushing full-year absorption to 2.9 million square feet. Vacancy rates declined slightly both quarter-over-quarter and year-over-year as energy companies expanded. Rental rates increased across the board, with average Class A rents in the CBD rising 2.6% and suburban Class A rents up 1.3%. Absorption was driven by energy sector tenants taking large blocks of space for expansion projects. The economy is expected to remain strong in 2014 with continued job and population growth.
Houston's strong job growth in the energy sector has boosted office leasing activity in the first half of 2012. Positive net absorption totaled 1.4 million square feet in Q2 alone, bringing the year-to-date total to 2.4 million square feet. Vacancy rates decreased slightly to 14.5% as demand outpaced new supply. Rental rates also increased slightly citywide to an average of $23.66 per square foot. Continued job and economic growth are expected to maintain a healthy office market outlook.
Houston's office market saw small improvements in Q1 2019, with vacancy rates declining slightly and positive net absorption of 724,000 SF. Leasing activity decreased from the previous quarter while rental rates increased. Job growth in Houston increased by 2.4% over the year, with gains in sectors like mining support, durable goods manufacturing, and construction.
Houston's office market had strong positive net absorption of 2.3 million square feet in Q1 2014, the highest since 2007. Vacancy rates declined slightly while rental rates increased across the market. Major energy companies are expanding and adding new office projects. The local economy is expected to remain strong in 2014 with continued healthy job and population growth.
Houston's office market saw modest growth in Q2 2013, with 286,000 SF of positive net absorption. Absorption was lower than the previous year's quarter but is expected to increase as new developments deliver space later in the year. The overall vacancy rate increased slightly to 14.9% while average rental rates rose to $24.26 per SF. Job and economic growth in Houston remained strong, led by expansion in the energy sector. New office developments totaling over 9 million SF are planned or under construction to accommodate ongoing corporate growth.
The document summarizes key office market indicators and trends for Houston, Texas in Q1 2015. Net absorption slowed to 1.2 million SF compared to 2.3 million SF in Q1 2014, while vacancy rates increased slightly. Rental rates remained relatively stable, increasing 0.9% citywide. Over 3.5 million SF of new inventory delivered during the quarter, with 68% pre-leased. The effects of lower oil prices are beginning to impact the Houston office market, as available sublease space increased 33% and job growth slowed compared to previous periods. However, vacancy rates remain moderate and most proposed construction projects have been put on hold, which should help stabilize the market.
The Houston office market summary provides an overview of key indicators in Q3 2014. Net absorption was 420k SF, pushing the year-to-date total to 4.4M SF. The average citywide vacancy rate increased slightly to 11.9% while average rental rates rose to $26.94 per SF. Strong job and economic growth are expected to continue driving demand in the Houston market through the end of 2014.
Houston's office market saw strong absorption in Q4 2013, pushing full-year absorption to 2.9 million square feet. Vacancy rates declined slightly both quarter-over-quarter and year-over-year as energy companies expanded. Rental rates increased across the board, with average Class A rents in the CBD rising 2.6% and suburban Class A rents up 1.3%. Absorption was driven by energy sector tenants taking large blocks of space for expansion projects. The economy is expected to remain strong in 2014 with continued job and population growth.
Houston's strong job growth in the energy sector has boosted office leasing activity in the first half of 2012. Positive net absorption totaled 1.4 million square feet in Q2 alone, bringing the year-to-date total to 2.4 million square feet. Vacancy rates decreased slightly to 14.5% as demand outpaced new supply. Rental rates also increased slightly citywide to an average of $23.66 per square foot. Continued job and economic growth are expected to maintain a healthy office market outlook.
Houston's office market saw small improvements in Q1 2019, with vacancy rates declining slightly and positive net absorption of 724,000 SF. Leasing activity decreased from the previous quarter while rental rates increased. Job growth in Houston increased by 2.4% over the year, with gains in sectors like mining support, durable goods manufacturing, and construction.
This document summarizes phases 1-3 of a study supporting priority investment in Somerset County, New Jersey. Phase 1 findings include socioeconomic analysis showing demand for senior and multifamily housing and identification of areas with low land value suitable for redevelopment. Phase 2 assesses real estate market trends, finding high office and retail vacancy rates but opportunities for mixed-use and small industry. Phase 3 further analyzes real estate data to identify target areas. The overall goals are to align land use and infrastructure plans to convey clear development priorities and leverage resources.
- The Houston office market vacancy rate increased to 18.5% in Q1 2017, with slower job growth and energy sector layoffs contributing to higher vacancies. However, available sublease space has decreased in the last two quarters, indicating the market may be stabilizing.
- Office construction in Houston has declined significantly, with the pipeline shrinking 50% in one year and 65% over two years. Only 1.8 million square feet of new space was delivered in Q1 2017, with 40% vacant.
- Job growth in Houston has been slower than average due to the weakened energy market, but 19,300 new jobs were added in the metro area between February 2016-2017, with growth in arts, entertainment
- Austin's office market posted the highest ever positive net absorption of 902,046 square feet in Q4 2015, with five new buildings delivering 676,904 square feet of space.
- Vacancy rates continued to decline across the city, with the CBD seeing the largest drop to 6.8% vacancy.
- Rental rates increased slightly citywide and in the CBD, while job growth and absorption remained strong as Austin's economy thrives.
Q4 2015 Austin Office Market Research & Forecast ReportLisa Bridges
- Austin's office market posted the highest positive net absorption ever recorded in Q4 2015 at 902,046 square feet. Five new buildings totaling 676,904 square feet delivered, with 1.579 million square feet currently under construction.
- The citywide average rental rate increased slightly to $30.71 per square foot, while Class A CBD rental rates rose 1.4% to $44.36 per square foot. Vacancy rates continued declining, with the CBD rate falling to 6.8%.
- Austin's unemployment rate of 3.3% remains below state and national averages, and job growth in Austin increased 3.9% annually, significantly higher than state and national averages.
This document provides an investor update from AvalonBay for November 2019. The key messages are: 1) Rent growth on the East and West Coasts has converged to around 3% in AvalonBay's markets. 2) Improving net operating income margins through innovation in the operating model. 3) Creating value through accretive, match-funded development. 4) Executing a condominium and retail strategy at The Park Loggia property in New York.
Share or view online at colliers.com/houston
Houston’s industrial market continues to expand adding 3.4M SF of new inventory in Q1 2019 with an additional 16.2M SF under construction
Year-to-date leasing activity surpassed the 2015 total in the third quarter, a positive sign for market. As the long-awaited East End Bridge nears completion, developers are looking to acquire land along the newly-opened access points as activity shifts to the northeast. In addition, four projects were announced in the third quarter total over 300,000 square feet of proposed speculative space as developers remain bullish on the market.
Austin's office market saw a large increase in sublease space availability in Q2 2020, with over 100,000 square feet added from several large companies. The sublease availability increased over 40% compared to the start of Q2, reflecting the economic challenges brought on by the COVID-19 pandemic. However, construction continued on projects like Google and Indeed's downtown towers, and Tesla announced plans for a new factory in Austin, showing signs that Austin remains an attractive market. Vacancy rates increased overall to 13.6% as net absorption turned negative, but some submarkets did see positive absorption.
Savillsresearch briefing-brisbane-cbd-office-q2-2019Tracy Tam
The document summarizes office market conditions in Brisbane's CBD in June 2019. It finds that office absorption and investment volumes continued to grow over the past year, with investment turnover reaching $2 billion for the first time in six years. Yield pressure remains with A-Grade yields falling 65 basis points over the last year. Leasing activity and demand strengthened, with net absorption up 65% year-over-year. Vacancy fell to 13.0%, its lowest point since 2014, and is forecast to continue declining gradually.
Austin's office market continues to see strong growth in 2014, with over 2.4 million square feet under construction. In Q2 2014, Austin posted positive net absorption of 85,623 square feet. The average citywide rental rate increased 0.9% over the quarter to $27.77 per square foot. The local economy is forecast to add 68,000 to 72,000 new jobs in 2014, which will help drive further growth in the office market.
The document summarizes commercial real estate market trends in Austin, TX in Q3 2021. Key points include:
- Vacancy rates decreased slightly to 19.2% while net absorption was positive at 705K SF
- Strong demand driven by corporate expansions and relocations is fueling investment in Austin commercial real estate
- Average citywide lease rates increased slightly to $46.16/SF, with higher rates in prime locations
- Over 4.5M SF of new construction is underway to meet continuing strong demand in the market
- Austin's office market experienced negative absorption of 24,603 SF in Q2 2016, the first negative absorption since 2012, driven by decreases in the CBD, North/Domain, Northwest, and Southwest submarkets.
- Vacancy rates increased both citywide and in the CBD and suburban areas. The average rental rate increased slightly to $34.65 per SF. Rents in the CBD increased to $49.52 per SF.
- Three buildings totaling 196,463 SF delivered in Q2, with absorption rates of 91.9% upon delivery. The largest delivery was a 74,804 SF building in North/Domain.
This document provides an overview of the industrial real estate market in Austin, TX for the first quarter of 2021. Key points include:
- Net absorption was 207K SF with vacancy at 7.9%, continuing the positive trends seen in late 2020.
- Population growth in Austin remains very strong at 184 people per day, fueling demand for industrial space from retailers, manufacturers, and logistics companies.
- Over 1.6M SF of new industrial space is under construction, but continued strong demand is expected to absorb space as it delivers through 2022.
The document provides an overview of the Austin office market in Q1 2020. It summarizes that the market saw 35,453 SF of negative net absorption in Q1, with large negative absorption in Class A buildings. Vacancy increased to 13.0% citywide. Rental rates increased slightly to $35.93 on average. The report also discusses the impacts of COVID-19 on the market and expectations for Q2 2020.
Central Coast Industrial Snapshot Q1 2015Lynn Nguyen
The Central Coast industrial market saw a vacancy rate of 8.0% in Q1 2015, unchanged from last quarter but down from 10.4% a year ago. Absorption slowed significantly with just 15,000 SF absorbed compared to an average of 232,000 SF per quarter in 2014. The Salinas/Castroville submarket led the region with 49,000 SF of occupancy growth while Santa Cruz County saw a modest decline of 34,000 SF, increasing its vacancy rate. Monterey County's vacancy rate declined slightly while Santa Cruz warehouse vacancy increased.
Houston's office market saw slowing leasing activity and absorption in Q1 2013 compared to the previous year, with vacancy increasing slightly to 13.9%. However, rental rates increased overall and job growth in Houston remained strong at 4.5% annually. While leasing slowed in the short term due to limited available space, absorption is expected to increase later in the year when 9.4 million square feet of new office space under construction comes online.
Houston's office market saw strong leasing activity in the second quarter of 2012, driven by job growth in the energy sector. Net absorption was positive 1.4 million square feet, bringing the year-to-date total to 2.4 million square feet. Vacancy rates remained relatively unchanged, while average rental rates rose slightly. Several new office developments were announced to address the low available inventory as demand increased from companies looking to expand.
This document summarizes phases 1-3 of a study supporting priority investment in Somerset County, New Jersey. Phase 1 findings include socioeconomic analysis showing demand for senior and multifamily housing and identification of areas with low land value suitable for redevelopment. Phase 2 assesses real estate market trends, finding high office and retail vacancy rates but opportunities for mixed-use and small industry. Phase 3 further analyzes real estate data to identify target areas. The overall goals are to align land use and infrastructure plans to convey clear development priorities and leverage resources.
- The Houston office market vacancy rate increased to 18.5% in Q1 2017, with slower job growth and energy sector layoffs contributing to higher vacancies. However, available sublease space has decreased in the last two quarters, indicating the market may be stabilizing.
- Office construction in Houston has declined significantly, with the pipeline shrinking 50% in one year and 65% over two years. Only 1.8 million square feet of new space was delivered in Q1 2017, with 40% vacant.
- Job growth in Houston has been slower than average due to the weakened energy market, but 19,300 new jobs were added in the metro area between February 2016-2017, with growth in arts, entertainment
- Austin's office market posted the highest ever positive net absorption of 902,046 square feet in Q4 2015, with five new buildings delivering 676,904 square feet of space.
- Vacancy rates continued to decline across the city, with the CBD seeing the largest drop to 6.8% vacancy.
- Rental rates increased slightly citywide and in the CBD, while job growth and absorption remained strong as Austin's economy thrives.
Q4 2015 Austin Office Market Research & Forecast ReportLisa Bridges
- Austin's office market posted the highest positive net absorption ever recorded in Q4 2015 at 902,046 square feet. Five new buildings totaling 676,904 square feet delivered, with 1.579 million square feet currently under construction.
- The citywide average rental rate increased slightly to $30.71 per square foot, while Class A CBD rental rates rose 1.4% to $44.36 per square foot. Vacancy rates continued declining, with the CBD rate falling to 6.8%.
- Austin's unemployment rate of 3.3% remains below state and national averages, and job growth in Austin increased 3.9% annually, significantly higher than state and national averages.
This document provides an investor update from AvalonBay for November 2019. The key messages are: 1) Rent growth on the East and West Coasts has converged to around 3% in AvalonBay's markets. 2) Improving net operating income margins through innovation in the operating model. 3) Creating value through accretive, match-funded development. 4) Executing a condominium and retail strategy at The Park Loggia property in New York.
Share or view online at colliers.com/houston
Houston’s industrial market continues to expand adding 3.4M SF of new inventory in Q1 2019 with an additional 16.2M SF under construction
Year-to-date leasing activity surpassed the 2015 total in the third quarter, a positive sign for market. As the long-awaited East End Bridge nears completion, developers are looking to acquire land along the newly-opened access points as activity shifts to the northeast. In addition, four projects were announced in the third quarter total over 300,000 square feet of proposed speculative space as developers remain bullish on the market.
Austin's office market saw a large increase in sublease space availability in Q2 2020, with over 100,000 square feet added from several large companies. The sublease availability increased over 40% compared to the start of Q2, reflecting the economic challenges brought on by the COVID-19 pandemic. However, construction continued on projects like Google and Indeed's downtown towers, and Tesla announced plans for a new factory in Austin, showing signs that Austin remains an attractive market. Vacancy rates increased overall to 13.6% as net absorption turned negative, but some submarkets did see positive absorption.
Savillsresearch briefing-brisbane-cbd-office-q2-2019Tracy Tam
The document summarizes office market conditions in Brisbane's CBD in June 2019. It finds that office absorption and investment volumes continued to grow over the past year, with investment turnover reaching $2 billion for the first time in six years. Yield pressure remains with A-Grade yields falling 65 basis points over the last year. Leasing activity and demand strengthened, with net absorption up 65% year-over-year. Vacancy fell to 13.0%, its lowest point since 2014, and is forecast to continue declining gradually.
Austin's office market continues to see strong growth in 2014, with over 2.4 million square feet under construction. In Q2 2014, Austin posted positive net absorption of 85,623 square feet. The average citywide rental rate increased 0.9% over the quarter to $27.77 per square foot. The local economy is forecast to add 68,000 to 72,000 new jobs in 2014, which will help drive further growth in the office market.
The document summarizes commercial real estate market trends in Austin, TX in Q3 2021. Key points include:
- Vacancy rates decreased slightly to 19.2% while net absorption was positive at 705K SF
- Strong demand driven by corporate expansions and relocations is fueling investment in Austin commercial real estate
- Average citywide lease rates increased slightly to $46.16/SF, with higher rates in prime locations
- Over 4.5M SF of new construction is underway to meet continuing strong demand in the market
- Austin's office market experienced negative absorption of 24,603 SF in Q2 2016, the first negative absorption since 2012, driven by decreases in the CBD, North/Domain, Northwest, and Southwest submarkets.
- Vacancy rates increased both citywide and in the CBD and suburban areas. The average rental rate increased slightly to $34.65 per SF. Rents in the CBD increased to $49.52 per SF.
- Three buildings totaling 196,463 SF delivered in Q2, with absorption rates of 91.9% upon delivery. The largest delivery was a 74,804 SF building in North/Domain.
This document provides an overview of the industrial real estate market in Austin, TX for the first quarter of 2021. Key points include:
- Net absorption was 207K SF with vacancy at 7.9%, continuing the positive trends seen in late 2020.
- Population growth in Austin remains very strong at 184 people per day, fueling demand for industrial space from retailers, manufacturers, and logistics companies.
- Over 1.6M SF of new industrial space is under construction, but continued strong demand is expected to absorb space as it delivers through 2022.
The document provides an overview of the Austin office market in Q1 2020. It summarizes that the market saw 35,453 SF of negative net absorption in Q1, with large negative absorption in Class A buildings. Vacancy increased to 13.0% citywide. Rental rates increased slightly to $35.93 on average. The report also discusses the impacts of COVID-19 on the market and expectations for Q2 2020.
Central Coast Industrial Snapshot Q1 2015Lynn Nguyen
The Central Coast industrial market saw a vacancy rate of 8.0% in Q1 2015, unchanged from last quarter but down from 10.4% a year ago. Absorption slowed significantly with just 15,000 SF absorbed compared to an average of 232,000 SF per quarter in 2014. The Salinas/Castroville submarket led the region with 49,000 SF of occupancy growth while Santa Cruz County saw a modest decline of 34,000 SF, increasing its vacancy rate. Monterey County's vacancy rate declined slightly while Santa Cruz warehouse vacancy increased.
Houston's office market saw slowing leasing activity and absorption in Q1 2013 compared to the previous year, with vacancy increasing slightly to 13.9%. However, rental rates increased overall and job growth in Houston remained strong at 4.5% annually. While leasing slowed in the short term due to limited available space, absorption is expected to increase later in the year when 9.4 million square feet of new office space under construction comes online.
Houston's office market saw strong leasing activity in the second quarter of 2012, driven by job growth in the energy sector. Net absorption was positive 1.4 million square feet, bringing the year-to-date total to 2.4 million square feet. Vacancy rates remained relatively unchanged, while average rental rates rose slightly. Several new office developments were announced to address the low available inventory as demand increased from companies looking to expand.
Houston's strong job growth and healthy economy boosted office leasing activity in Q3 2012. Leasing activity reached 2.6 million SF, pushing the year-to-date total to over 9.75 million SF. Houston's overall vacancy rate fell to 14.2% as net absorption reached 767,000 SF in Q3. With continued expansion in the energy industry and a strong housing market, Houston's economy is expected to remain healthy.
Houston's office market saw positive net absorption of 715,000 SF in Q3 2013, with rental rates increasing citywide. Over 10.5M SF of new office space is under construction. The vacancy rate rose slightly to 15.4% due to new inventory delivery, though CBD vacancy declined. Strong job and economic growth are expected to continue driving demand for office space.
Houston's strong job growth and healthy economy boosted office leasing activity in 2012. Fourth quarter leasing reached 2.4 million square feet, pushing the annual total past 12.2 million square feet. Vacancy rates declined across the city while rental rates increased slightly. Major transactions included the $175 million sale of the KBR Tower and Modec International leasing 127,000 square feet at Energy Crossing II.
Houston's office market saw positive absorption of 84,750 SF in Q2 2018, rebounding from negative absorption in Q1 2018. Vacancy rates decreased slightly to 21.7% overall but increased year-over-year. Large companies like Occidental Petroleum are downsizing space and subleasing hundreds of thousands of square feet. Rental rates have remained relatively stable while leasing activity decreased compared to prior periods.
Houston's retail market posted strong gains in the second quarter of 2014. Net absorption was 1.2 million square feet, vacancy rates fell to a record low of 6.3%, and average rental rates increased. Notable leases signed included Whole Foods, Kroger Marketplace, and Conn's Appliances. With 1.2 million square feet under construction and strong job and economic growth forecasted, the Houston retail market is expected to continue its positive momentum.
The document summarizes Houston's office market performance in Q1 2018. Key points include:
- The overall vacancy rate increased to 20.1% due to large companies vacating space after layoffs and mergers, resulting in 1.5 million square feet of negative absorption.
- Sublease availability increased back above 9.0 million square feet due to space returned to the market during the energy downturn.
- Rental rates saw small decreases across classes and markets, with the average Class A rate at $34.91 per square foot.
- Leasing activity decreased 32% from the previous quarter while investment sales dropped slightly over the year.
Houston's industrial market remains strong due to growth in the oil and gas industry. In Q1 2014, 1.9 million square feet of industrial space was absorbed. Vacancy rates rose slightly to 5.4% and average rental rates increased 2.4% compared to the previous quarter. Job and population growth in Houston are expected to sustain demand for industrial real estate throughout 2014.
The document provides an overview of the office market in Toronto for the third quarter of 2014. It finds that vacancy rates continued to decline in the downtown core while rising in the suburbs. Demand was strongest in the financial and technology sectors, particularly for large spaces downtown. Investment activity remained constrained due to limited supply, though new development projects were attracting investors. Vacancy increased in the midtown area following a large space being sublet. The central north market saw a slowdown in leasing despite low vacancy.
The document summarizes Houston's industrial real estate market performance in Q2 2017. Some key points:
- Vacancy rate increased slightly from 5.3% to 5.5% as absorption slowed.
- Over 1.5 million square feet of new industrial space was delivered in Q2. There is currently 4.2 million square feet under construction, with 77.2% pre-leased.
- Two large new petrochemical plants were announced, reflecting continued growth in that industry in the Houston area.
- Average industrial rental rates decreased slightly both quarterly and annually as more available space entered the market.
Houston's industrial market remains strong due to growth in the oil and gas industry. In Q2 2014, the market absorbed 1.6 million square feet of space. Year-to-date net absorption was positive 3.3 million square feet. Vacancy rates remained unchanged at 5.5% while average rental rates decreased slightly. The industrial construction pipeline includes 3.9 million square feet currently under construction. Houston's economy is expected to remain strong in 2014 due to continued job and energy sector growth.
Houston's industrial market remains strong with positive net absorption of 2.1 million square feet in Q4 2013, bringing total net absorption for the year to 7 million square feet. The average vacancy rate remained low at 5.2% as demand outpaced new supply. Rental rates increased both quarter-over-quarter and year-over-year due to low vacancy. New development is robust with 4.4 million square feet under construction to meet ongoing demand driven by job and population growth in Houston.
Austin’s office market continues to deliver as
we hit the midyear mark
Boots On The Ground Commentary by David Bremer
Our “Boots on the Ground” view point is the voice of our experts, who
have broken down the market data and compared it to what they are
seeing for themselves. This is their take on what the numbers actually
mean for the Austin office market.
There are two mistruths I’ve heard perpetuated by the real estate
community, including myself once or twice, over the past year: (1)
This occupancy and these rates can’t last forever, and (2) MoPac
construction should be done soon.
The Austin office market rebounded sharply in the 2nd quarter,
with extremely high Net Absorption of almost 600,000 RSF.
Vacancy remained relatively flat, however rates continue to trend
higher.
http://bit.ly/Q2_2017_Austin_Office_Page
Houston's office market posted positive net absorption of 673,000 square feet in Q4 2017, the first positive figure in several years. However, the 2017 yearly total was still negative at -1.7 million square feet due to previous quarters of negative absorption. Vacancy rates decreased slightly to 19.1% from 19.3% over the quarter but remained higher than the 17.5% rate from Q4 2016. Rents for Class A office space decreased slightly to $34.97 per square foot on average.
Austin's industrial market saw a slowdown in new construction and negative net absorption in Q2 2019, though leasing activity remained high. Vacancy rates increased slightly to 8.8% as over 140,000 square feet of new space was delivered. Looking ahead, over 460,000 square feet of space has been leased for Q3 2019 occupancy, including an 89,000 square foot lease to FedEx. Average rental rates decreased moderately across all product types compared to Q1 2019. Approximately 951,000 square feet remained under construction across 14 projects in Austin.
The Houston office market continued to contract in Q4 2020 with negative absorption of 836,140 square feet. Vacancy rates increased to 21.7% as the COVID pandemic continued to impact the market. Rental rates remained steady while landlord concessions became more aggressive. The outlook remains uncertain depending on vaccine distribution and return to office trends.
Houston's industrial market remains healthy with low vacancy, stable rental rates, and positive net absorption. In Q2 2013, Houston posted 336,000 SF of net absorption, bringing the YTD total to 2.6M SF. The average vacancy rate increased slightly to 5.1% while average quoted rental rates rose 4.2% year-over-year. Demand for new industrial space continues to drive development, with 4.3M SF currently under construction, mostly speculative projects. Houston's economy is expected to remain strong due to continued expansion in the energy industry.
Austin's industrial market posted negative net absorption in Q1 2019, though several large tenants occupied significant space. Average rental rates increased slightly citywide while flex/R&D rates increased significantly. New construction activity remained high with over 1.7 million square feet under construction, including six new buildings in Phase II of Park 183. Absorption was positive in some submarkets and negative in others, with the largest decreases occurring in the Southeast.
Similar to Q2 2014 Office Market Research Report (20)
According to the document:
- Office activity has picked up significantly in the past quarter, with demand focused on newer Class A space in the CBD, South Central, and East areas of Austin. This has driven up rental rates in these core areas.
- Sublease space has received significant attention, with many subleases being occupied or nearing lease documentation. This allows tenants to avoid long construction timelines and realize substantial cost savings versus building out their own space.
- Overall vacancy remained at 19.3% as net absorption was negative, but delivery of new supply also slowed, suggesting continued strong demand. Rental rates across Austin increased slightly but remained flat in suburban areas.
The industrial market in Austin, TX continued to experience tight supply and strong demand in the second quarter of 2021. Net absorption was 1,006,935 SF while vacancy dropped to 6.6%. However, the large development pipeline will not provide meaningful relief on vacancy until late 2021 and early 2022 as 2.3 million SF is currently under construction. With constrained supply across all size ranges, escalating rents and limited concessions are expected to continue through the rest of the year.
The industrial real estate market in Austin saw tremendous growth and demand in 2020, driven primarily by e-commerce including Amazon expanding its footprint six-fold. Additionally, Tesla's announcement of a new gigafactory in Austin increased demand from suppliers. Available big box space over 100,000 SF became scarce as large requirements competed for limited supply. Developers responded by rapidly pursuing new developments to meet rising demand.
Austin's industrial market saw strong leasing activity and positive net absorption in Q3 2020 despite the effects of the COVID-19 pandemic. Net absorption was 887,476 square feet as large tenants occupied significant space. The vacancy rate decreased from 9.8% to 8.2% while average rental rates slightly decreased citywide. Construction activity also remained high with over 2.3 million square feet under construction across six projects.
The Woodlands office market posted negative net absorption of 130,960 SF in Q3 2020, pushing the year-to-date total to negative 915,333 SF. The average Class A rental rate decreased to $36.85 per SF while the Class B rate increased to $33.42 per SF. Sublease availability rose with 371,974 SF for Class A and 79,878 SF for Class B. Leasing activity declined 43% from the previous quarter.
The Fort Bend commercial real estate market saw modest improvements in the third quarter of 2020. The office vacancy rate declined slightly while absorption and rental rates decreased. Medical office vacancy rose slightly while rental rates increased. Industrial vacancy rose due to new inventory additions, though rental rates increased and absorption was positive. Retail vacancy and negative absorption increased while rental rates rose. Several new commercial projects are under construction.
The Austin office market saw negative net absorption in Q3 2020, with vacancy rates increasing to 15.2%. Rental rates remained relatively stable but concessions are increasing. While construction remains high and demand is decreasing in the short term, Austin is still attracting companies and is well positioned to recover more quickly than other markets due to its business environment and quality of life.
The Woodlands office submarket in Houston, Texas recorded negative net absorption of 129,342 square feet in the second quarter of 2020, pushing the mid-year 2020 total net absorption to negative 239,835 square feet. Specifically, Class A space saw negative absorption due to a tenant vacating 134,000 square feet, while Class B space recorded negative absorption of 46,053 square feet. Rental rates for both Class A and B space remained stable despite the increase in vacancy rates caused by the negative absorption.
The Fort Bend commercial real estate market saw declines across most sectors in Q2 2020. The office vacancy rate rose to 11.8% with negative absorption, while average rents fell slightly. Medical office vacancy increased to 15.3% while rents rose. Industrial vacancy remained at 9.4% despite positive absorption as new inventory was added. Retail vacancy increased to 6.9% with negative absorption, as average rents grew slightly. Several new commercial projects are under construction across sectors totaling over 1.2 million square feet.
The document discusses how the COVID-19 pandemic has negatively impacted Houston's healthcare real estate market. Healthcare systems have seen their bottom lines impacted by the cancellation of profitable elective surgeries and costs associated with treating COVID-19 patients. As a result, previously planned expansions have been put on hold or scaled back as healthcare providers reduce expenses and medical office leasing activity has slowed. Some construction projects are still moving forward but larger, more ambitious capital projects have been delayed until the effects of the pandemic subside.
Austin's industrial market posted negative net absorption in Q1 2020 due to space coming online, including at NorthTech Business Center and Amazon leasing a large space. Rental rates increased across flex/R&D and warehouse/distribution spaces. Over 1 million square feet of industrial space remains under construction, with over 800,000 square feet scheduled for delivery in Q2 2020. Vacancy increased slightly to 8.6% as large blocks of space came to the market.
The Woodlands Class A office market recorded positive net absorption of 277,596 square feet in Q1 2020, while Class B properties saw negative net absorption of 391,360 square feet. Rental rates for Class A properties were $38.58 per square foot on average in Q1 2020 compared to $32.18 for Class B. Vacancy rates for Class A were 7.3% compared to 18.6% for Class B.
The Fort Bend commercial real estate market saw improvements in the office and medical office sectors in Q1 2020. The office vacancy rate decreased while absorption and rental rates increased. Medical office saw declines in vacancy rate and rental rates. The industrial sector grew with strong absorption, but vacancy also increased significantly due to new inventory. Retail rental rates increased slightly while vacancy and absorption decreased. Several new developments are underway across property types.
The document provides a quarterly market report on the Houston retail sector in Q1 2020. It summarizes that the sector was healthy in Q1 but will be negatively impacted by COVID-19 going forward. Key statistics for Q1 2020 include a vacancy rate of 5.4% and 429,013 SF of net absorption. However, retail has been hardest hit by the economic shutdown, and vacancy is predicted to spike to over 12% with store closures. The future impact on the sector is difficult to predict due to the pandemic.
The document summarizes Houston's industrial real estate market performance in Q1 2020. It notes that vacancy increased to 7.9% from 6.9% in Q4 2019. Net absorption remained positive at 3.2M SF despite economic challenges from low oil prices and COVID-19. Rental rates increased slightly. The market faces short term uncertainty from the pandemic's economic impact, but the industrial sector is expected to outperform other commercial real estate over the long run due to growth in e-commerce, inventory stockpiling, and potential supply chain changes.
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Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
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Q2 2014 Office Market Research Report
1. RESEARCH & FORECAST REPORT
HOUSTON OFFICE MARKET
www.colliers.com/texas
Houston’s office market construction
pipeline increases to 17.8M SF
Houston’s strong economy continues to spur office development with over 17.8M SF currently under
construction. Over 1.7M SF of new inventory delivered during Q2, bringing 2014 year-to-date
delivered inventory to 3.7M SF. Our forecast projects another 4.5M SF of new inventory will be
completed by year-end 2014. Much of the construction activity is tied to the energy industry and
includes office buildings that Shell Oil, ExxonMobil, BHP, Phillips 66, and Southwestern Energy will
occupy once completed.
Houston’s office market posted 1.6M SF of positive net absorption in Q2 2014, pushing year-to-date
2014 net absorption to a positive 2.2M SF.
The citywide average rental rate increased 1.0% from $26.25 per SF to $26.52 per SF over the
quarter and 6.4% from $24.93 per SF to $26.52 per SF over the year. The average CBD rental rate
increased 8.5%, while the average suburban rental rate increased 6.4% over the year.
The Houston metropolitan area added 93,300 jobs between May 2013 and May 2014, an annual
increase of 3.3% over the prior year’s job growth. Local economists have forecasted 2014 job growth
to remain strong, expecting between 68,000 and 72,000 new jobs. Houston’s unemployment fell to
5.0% from 6.1% one year ago. Houston area home sales were down by 7.3% between May 2013 and
May 2014, the first decline in the past 34 months. The reduction was due to a lack of inventory.
Houston’s economy is expected to remain strong in 2014 due to healthy job growth and continued
expansion in the energy sector.
Q2 2014 | OFFICE MARKET
Q2
2013
Q2
2014
NET ABSORBTION (SF) 485K 1.6M
AVERAGE VACANCY 12.7% 11.8%
AVERAGE RENTAL
RATE
$24.93 $26.52
DELIVERED
INVENTORY (SF)
608K 1.7M
CLASS A RENTAL RATE
CBD
SUBURBAN
$36.86
$29.87
$40.54
$32.17
CLASS A VACANCY
CBD
SUBURBAN
10.9%
9.9%
9.8%
9.3%
UNEMPLOYMENT 5/13 5/14
HOUSTON 6.1% 5.0%
TEXAS 6.3% 5.1%
U.S. 7.3% 6.1%
JOB GROWTH & UNEMPLOYMENT
(Not Seasonally Adjusted)
JOB GROWTH
ANNUAL
CHANGE
# OF JOBS
ADDED
HOUSTON 3.3% 93.3K
TEXAS 3.4% 375.3K
U.S. 1.8% 2.4M
OFFICE MARKET INDICATORS
New Supply Net Absorption Vacancy
NEW SUPPLY, ABSORPTION AND VACANCY RATES
2. VACANCY & AVAILABILITY
Houston’s citywide vacancy rate fell 10 basis
points between quarters to 11.8% from 11.9%,
and dropped by 90 basis points annually from
12.7% in Q2 2013. Between quarters, the average
suburban vacancy rate remained at 11.9%, while
the average CBD vacancy rate decreased 70
basis points from 12.0% to 11.3%.
The average CBD Class A vacancy rate decreased
80 basis points between quarters from 10.6% to
9.8%, and the average CBD Class B vacancy rate
fell 60 basis points from 12.2% to 11.6%. The
average suburban Class A vacancy rate increased
90 basis points from 8.4% to 9.3%, and the
average suburban Class B vacancy rate fell 30
basis points from 14.7% to 14.4% between
quarters.
Of the 1,646 existing office buildings in our
survey, only 43 have 100,000 SF of contiguous
space available for lease or sublease. Further,
only 17 have 200,000 SF of contiguous space
available. Citywide, available sublease space
totals 3.9 million SF or 1.9% of Houston’s total
office inventory, but only 1.7 million SF of this
sublease space is currently vacant.
ABSORPTION & DEMAND
Houston’s office market posted 1.6M SF of
positive net absorption, a significant improvement
over the 485,000 SF of positive net absorption
posted in the same quarter one year ago.
Suburban Class A space posted the largest gain,
with 949,000 SF of positive net absorption, the
majority of which occurred in Westchase, E. Fort
Bend/Sugar Land, The Woodlands and Katy
Freeway submarkets.
Some of the larger tenants that moved into new
space during Q2 include: Energy XXI Services
(171,000 SF) moved into One City Centre in the
CBD submarket; Texas Instruments (159,999 SF)
moved into 13905 University Blvd located in the
E Ft Bend/Sugar Land submarket; Noble (Gulf of
Mexico) Inc. (88,510 SF) moved into Granite
Briarpark Green in the Westchase submarket;
and Jacobs Engineering (81,818 SF) moved into
Jacobs Plaza in the Katy Freeway submarket.
RENTAL RATES
The citywide average rental rate increased 1.0%
from $26.25 per SF to $26.52 per SF over the
quarter and 6.4% from $24.93 per SF to $26.52
per SF over the year. Average citywide Class A
rents increased 1.8% and Class B rents increased
1.0% over the quarter.
The Class A average rental rate in the CBD
increased 4.9% from $38.66 per SF to $40.54
per SF between quarters, while the suburban
Class A average rental rate increased 0.7% from
$31.95 per SF to $32.17 per SF. The average
Class B rental rate in the CBD rose 1.9%, while
the average suburban Class B rental rate
increased 1.1% between quarters.
QUOTED GROSS RENTAL RATES FOR EXISTING TOP PERFORMING OFFICE BUILDINGS
BUILDING NAME ADDRESS SUBMARKET RBA (SF)
YEAR
BUILT
%
LEASED AVAIL. SF
RENT
($/SF) OWNER
600 Travis 600 Travis CBD 1,656,529 1982/
2012
94.30% 155,299 $46.80 Hines
Heritage Plaza 1111 Bagby CBD 1,359,266 1986 98.90% 32,950 $50.71 AEW Capital Management and
Brookfield Office Properties, Inc.
BG Group Place 811 Main CBD 972,474 2011 96.50% 143,333 $48.71 NPS of Korea
CityCentre Three 842 W Sam Houston Pky N Katy Freeway 120,211 2012 94.70% 6,349 $45.96 Midway T & C Land Investors
Williams Tower 2800 Post Oak Blvd West Loop/Galleria 1,476,973 1983 99.10% 81,987 $48.36 Invesco Real Estate
BBVA Compass Plaza 2200 Post Oak Blvd West Loop/Galleria 312,574 2013 77.50% 70,244 $46.50 RS Post Oak Perennial LP
CityWestPlace 4 2103 CityWest Blvd Westchase 518,293 2001 99.50% 92,984 $47.43 Parkway Properties, Inc.
One BriarLake Plaza 2000 W Sam Houston Pky Westchase 502,410 2000 97.50% 53,384 $47.56 TIER REIT, Inc.
One Hughes Landing 1800 Hughes Landing Blvd The Woodlands 197,719 2013 99.20% 1,589 $46.38 The Woodlands Development
Company, L.P.
Two Hughes Landing 1790 Hughes Landing Blvd The Woodlands 197,719 2014 20.60% 156,967 $46.38 The Woodlands Development
Company, L.P.
CBD VS. SUBURBAN
CLASS A OFFICE RENTS
CLASS A OFFICE VACANCY
CBD Vacancy Suburban Vacancy
CBD Rents Suburban Rents
Note: Available SF includes direct and sublet space as well as any future available space listed. Source: CoStar Property
P. 2 | COLLIERS INTERNATIONAL
RESEARCH & FORECAST REPORT | Q2 2014 | HOUSTON OFFICE MARKET
3. LEASING ACTIVITY
Houston’s office leasing activity reached 3.0 million SF in Q2 2014 with transactions including renewals, expansions, subleases, and pre-leases in
buildings currently under construction.
TOP TRANSACTIONS
LEASES
BUILDING NAME/ADDRESS SUBMARKET SF TENANT LEASE DATE
One City Centre CBD 171,016 Energy XXI Services1,2
Apr-14
One Allen Center CBD 109,373 Motiva Enterprises3
May-14
Fulbright Tower CBD 89,011 Key Energy Services Apr-14
3831 Technology Forest Dr The Woodlands 70,561 Kiewit Energy Group Apr-14
12000 Aerospace Ave NASA/Clear Lake 30,236 Inspectorate American General2
May-14
West Loop I Bellaire 29,704 Synergy Healthcare1
Apr-14
600 Travis CBD 21,791 IHS Global2
May-14
Lakes on Post Oak Galleria/Uptown 19,799 Sinpoec USA1,2
Apr-14
Lakes on Post Oak Galleria/Uptown 19,625 Zimmerman, Axelrad, Myer, Stern & Wise Apr-14
American General Center Midtown 12,352 Ebanks Horne Rota Moos Apr-14
SALES ACTIVITY
Houston’s office investment sales activity included 45 sales transactions with a total sales volume of approximately $157 million, averaging $153 per SF.
Listed below are a few significant transactions that closed in Q2 2014.
SIGNIFICANT TRANSACTIONS
SALES 100,000 SF OR GREATER
BUILDING NAME SUBMARKET RBA (SF) YEAR BUYER SELELR
SALE
PRICE $/SF CLOSED
Sugar Creek I & II E Fort Bend/ Sugar
Land
409,168 2000 &
2009
Stockdale Capital
Partners & Brener
International Group,
LLC
Granite Properties, Inc. $82.7M $202 Apr-14
Oak Park Office
Center III
Westchase 151,000 2008 The Mallick Group &
Keating Investments
Grubb & Ellis Realty
Investors, LLC
$27.40 $182 May-14
Eight Greenspoint
Plaza
North Belt/
Greenspoint
198,257 1994 Stream Realty Partners ExxonMobil Corporation $16.1M $81 May-14
1800 Bering West Loop/ Galleria 170,881 1982/ 2005 KBS Realty Advisors Harbert Management
Corp JV Fuller Realty
Partners
$27.8M $162 Jun-14
1
Renewal 2
Expansion/Extension 3
Sublease 4
Pre-lease/proposed or under construction
CITY TO WATCH
The Urban Land Institute ranked
Houston the number two city to watch
in 2014 in its “Emerging Trends in Real
Estate 2014”, due to increased interest
from foreign investors.
RESEARCH & FORECAST REPORT | Q2 2014 | HOUSTON OFFICE MARKET
COLLIERS INTERNATIONAL | P. 3
4. INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY
VACANCY RATE
(%)
NET ABSORPTION (SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL (SF)
Q2-
2014
Q1-
2014
Q2-2014 Q1-2014
AVG
($/SF)
CBD
A 31 30,778,455 2,453,645 8.0% 567,424 1.8% 3,021,069 9.8% 10.6% 227,672 -30,481 $40.54
B 31 10,517,518 1,199,039 11.4% 21,720 0.2% 1,220,759 11.6% 12.2% 59,895 11,485 $27.51
C 20 1,374,651 594,363 43.2% 0 0.0% 594,363 43.2% 44.4% 16,340 31,248 $19.70
Total 82 42,670,624 4,247,047 10.0% 589,144 1.4% 4,836,191 11.3% 12.0% 303,907 12,252 $36.35
SUBURBAN
A 294 75,225,262 6,318,174 8.4% 692,962 0.9% 7,011,136 9.3% 8.4% 948,944 2,194,677 $31.95
B 938 78,395,002 10,814,085 13.8% 463,321 0.6% 11,277,406 14.4% 14.7% 324,097 61,661 $19.71
C 332 15,112,305 1,855,584 12.3% 5,287 0.3% 1,860,871 12.3% 12.5% 66,091 -32,033 $15.68
Total 1,564 168,732,569 18,987,843 11.3% 1,161,570 0.7% 20,149,413 11.9% 11.9% 1,339,132 2,224,305 $24.58
OVERALL
A 325 106,003,717 8,771,819 8.3% 1,260,386 1.2% 10,032,205 9.5% 9.2% 1,176,616 2,164,196 $34.09
B 969 88,912,520 12,013,124 13.5% 485,041 0.5% 12,498,165 14.1% 14.5% 383,992 73,146 $20.39
C 352 16,486,956 2,449,947 14.9% 5,287 0.0% 2,455,234 14.9% 15.4% 82,431 -785 $16.14
Total 1,646 211,403,193 23,234,890 11.0% 1,750,714 0.8% 24,985,604 11.8% 11.9% 1,643,039 2,236,557 $26.52
SUMMARY (CBD, SUBURBAN & OVERALL)
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY
VACANCY RATE
(%)
NET ABSORPTION (SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL (SF)
Q2-
2014
Q1-
2014
Q2-2014 Q1-2014
AVG
($/SF)
ALLEN PARKWAY
A 4 1,598,033 243,422 15.2% 0 0.0% 243,422 15.2% 13.2% -32,355 -57,664 $32.11
B 32 2,620,056 152,307 5.8% 4,048 0.2% 156,355 6.0% 7.8% 46,749 -28 $26.22
C 15 503,182 114,664 22.8% 0 0.0% 114,664 22.8% 22.8% -106 -6,415 $25.85
Total 51 4,721,271 510,393 10.8% 4,048 0.1% 514,441 10.9% 11.2% 14,288 -64,107 $29.00
BAYTOWN
B 3 186,005 697 0.4% 0 0.0% 697 0.4% 0.0% -697 0 $17.18
C 3 81,481 1,812 2.2% 0 0.0% 1,812 2.2% 28.0% 21,026 0 $9.87
Total 6 267,486 2,509 0.9% 0 0.0% 2,509 0.9% 8.5% 20,329 0 $10.98
BELLAIRE
A 6 1,103,546 95,439 8.6% 8,737 0.8% 104,176 9.4% 12.2% 30,312 11,207 $25.52
B 18 2,609,813 104,499 4.0% 6,034 0.2% 110,533 4.2% 4.1% -4,475 2,214 $22.46
C 5 333,970 17,052 5.1% 0 0.0% 17,052 5.1% 5.6% 1,505 2,301 $15.91
Total 29 4,047,329 216,990 5.4% 14,771 0.4% 231,761 5.7% 6.4% 27,342 15,722 $24.29
CONROE AND OUTLYING MONTGOMERY CO
A 2 106,832 46,832 43.8% 0 0.0% 46,832 43.8% 43.8% 0 0 $24.53
B 10 511,805 21,819 4.3% 0 0.0% 21,819 4.3% 4.3% 0 0 $22.32
C 7 291,499 7,294 2.5% 0 0.0% 7,294 2.5% 4.3% 5,380 1,200 $15.93
Total 19 910,136 75,945 8.3% 0 0.0% 75,945 8.3% 8.9% 5,380 1,200 $22.47
E. FORT BEND/SUGAR LAND
A 18 3,517,453 324,021 9.2% 46,494 1.3% 370,515 10.5% 11.7% 182,709 -9,943 $28.11
B 36 2,170,361 289,281 13.3% 100,207 4.6% 389,488 17.9% 20.0% 44,355 7,129 $21.03
C 4 264,206 10,938 4.1% 2,347 0.9% 13,285 5.0% 5.0% 0 -1,790 $18.46
Total 58 5,952,020 624,240 10.5% 149,048 2.5% 773,288 13.0% 14.5% 227,064 -4,604 $24.60
SUBURBAN SUMMARY
P. 4 | COLLIERS INTERNATIONAL
RESEARCH & FORECAST REPORT | Q2 2014 | HOUSTON OFFICE MARKET
6. INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY
VACANCY RATE
(%)
NET ABSORPTION (SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL (SF)
Q2-
2014
Q1-
2014
Q2-2014 Q1-2014
AVG
($/SF)
RICHMOND/FOUNTAINVIEW
B 14 795,804 217,599 27.3% 0 0.0% 217,599 27.3% 27.8% 3,758 -6,066 $16.96
C 13 563,723 91,579 16.2% 0 0.0% 91,579 16.2% 17.0% 4,496 2,397 $14.06
Total 27 1,359,527 309,178 22.7% 0 0.0% 309,178 22.7% 23.3% 8,254 -3,669 $16.12
SAN FELIPE/VOSS
A 3 1,714,929 256,930 15.0% 0 0.0% 256,930 15.0% 16.1% 19,107 -11,538 $32.97
B 35 3,465,082 301,772 8.7% 27,945 0.8% 329,717 9.5% 11.5% 70,325 -48,840 $21.70
C
Total 38 5,180,011 558,702 10.8% 27,945 0.5% 586,647 11.3% 13.1% 89,432 -60,378 $27.14
SOUTH
A 1 80,000 0 0.0% 7,783 9.7% 7,783 9.7% 0.0% -7,783 0 $27.19
B 12 465,159 47,322 10.2% 0 0.0% 47,322 10.2% 9.9% -1,136 -3,000 $19.74
C 5 194,042 40,450 20.8% 0 0.0% 40,450 20.8% 20.8% 0 4,000 $23.12
Total 18 739,201 87,772 11.9% 7,783 1.1% 95,555 12.9% 11.7% -8,919 1,000 $22.58
SOUTH MAIN/MED CENTER
A 1 485,000 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -
B 12 735,379 87,357 11.9% 0 0.0% 87,357 11.9% 13.0% 8,255 9,512 $16.54
C 8 475,436 74,800 15.7% 0 0.0% 74,800 15.7% 18.7% 14,010 24,826 $16.34
TOTAL 21 1,695,815 162,157 9.6% 0 0.0% 162,157 9.6% 10.9% 22,265 34,338 $16.46
SOUTHEAST/OUTLIER
B 15 1,172,226 80,231 6.8% 0 0.0% 80,231 6.8% 6.8% -955 750 $20.11
C 6 236,043 0 0.0% 0 0.0% 0 0.0% 5.6% 13,120 4,163 $17.00
TOTAL 21 1,408,269 80,231 5.7% 0 0.0% 80,231 5.7% 6.6% 12,165 4,913 $19.54
SOUTHWEST
A 6 1,583,702 287,404 18.1% 0 0.0% 287,404 18.1% 17.6% -8,655 -8,615 $16.98
B 65 5,890,713 1,624,497 27.6% 0 0.0% 1,624,497 27.6% 27.6% -1,193 -162,474 $15.94
C 42 2,197,996 224,160 10.2% 0 0.0% 224,160 10.2% 9.6% -14,066 507 $14.27
TOTAL 113 9,672,411 2,136,061 22.1% 0 0.0% 2,136,061 22.1% 21.8% -23,914 -170,582 $15.88
SOUTHWEST FAR AND OUTLIER
A 2 93,591 10,880 11.6% 0 0.0% 10,880 11.6% 13.1% 1,392 6,871 $25.26
B 16 846,593 240,471 28.4% 0 0.0% 240,471 28.4% 31.3% 24,118 3,048 $21.05
C 2 51,396 0 0.0% 0 0.0% 0 0.0% 2.9% 1,500 600 $18.00
TOTAL 20 991,580 251,351 25.3% 0 0.0% 251,351 25.3% 28.1% 27,010 10,519 $22.16
WEST LOOP/GALLERIA
A 40 15,769,497 1,507,490 9.6% 253,795 1.6% 1,761,285 11.2% 10.2% -74,326 271,831 $35.20
B 59 6,991,200 861,286 12.3% 29,793 0.4% 891,079 12.7% 12.8% 2,272 -22,270 $26.26
C 4 216,268 1,502 0.7% 0 0.0% 1,502 0.7% 0.7% -39 2,096 $19.20
TOTAL 103 22,976,965 2,370,278 10.3% 283,588 1.2% 2,653,866 11.6% 10.9% -72,093 251,657 $32.26
WESTCHASE
A 28 7,697,646 907,063 11.8% 98,279 1.3% 1,005,342 13.1% 11.6% 185,245 78,224 $37.53
B 63 7,679,696 711,881 9.3% 7,555 0.1% 719,436 9.4% 8.9% -37,621 140,393 $20.30
C 10 686,740 65,400 9.5% 0 0.0% 65,400 9.5% 7.9% -11,445 2,938 $16.39
Total 101 16,064,082 1,684,344 10.5% 105,834 0.7% 1,790,178 11.1% 10.1% 136,179 221,555 $30.39
THE WOODLANDS
A 25 5,239,398 506,387 9.7% 77,159 1.5% 583,546 11.1% 4.5% 93,378 621,650 $36.09
B 70 4,573,496 284,321 6.2% 39,192 0.9% 323,513 7.1% 7.8% 35,263 139,604 $25.15
C 6 378,679 1,000 0.3% 0 0.0% 1,000 0.3% 0.3% 0 1,000 $19.80
Total 101 10,191,573 791,708 7.8% 116,351 1.1% 908,059 8.9% 5.9% 128,641 762,254 $30.57
SUBURBAN SUMMARY - CONTINUED
P. 6 | COLLIERS INTERNATIONAL
RESEARCH & FORECAST REPORT | Q2 2014 | HOUSTON OFFICE MARKET
7. DEVELOPMENT PIPELINE
Houston’s construction pipeline continues to expand with 17.8 million SF under construction at the end of Q2 2014. Build-to-suit projects make up 59.1%
of the 17.8M SF, and the remaining 7.3M SF of spec office space under construction is approximately 17.4% pre-leased. The table below includes office
buildings under construction with an RBA of 50,000 SF or greater.
BUILDING NAME ADDRESS SUBMARKET SF
PRE-
LEASED
DEVELOPER
EST.
DELIVERY
ExxonMobil Campus 23125 I-45 S Woodlands 3,000,000 100.0% Gilbane Building Company Jul-14
Phillips 66 2101 Citywest Blvd Westchase 1,100,000 100.0% W.S. Bellows Construction Company Jun-16
609 Main at Texas 609 Main St CBD 1,057,668 0.0% Hines Feb-17
CyrusOne West Campus Expansion 5150 Westway Park Blvd Northwest Far 640,000 100.0% CyrusOne Mar-15
Energy Center Four - ConocoPhillips 925 N Eldridge Pky Katy Freeway West 600,000 100.0% Trammell Crow Company Dec-16
BHP Biliton Petroleum 1500 Post Oak Blvd Galleria/Uptown 600,000 100.0% Transwestern Oct-16
Energy Center Three - ConocoPhillips 935 N Eldridge Pky Katy Freeway West 546,604 100.0% Trammell Crow Company May-15
Southwestern Energy HQ Interstate 45 & Grand Pky Woodlands 515,000 100.0% Patrinely Group, L.L.C. Dec-14
Noble Energy Center II SH 249 & Louetta Rd FM 1960/Hwy 249 456,000 100.0% Trammell Crow Company Jun-15
Air Liquide Center- South 9811 Katy Fwy Katy Freeway East 452,370 37.8% Anslow Bryant Construction Ltd. Nov-15
Energy Tower IV 11750 Katy Fwy Katy Freeway West 428,831 12.1% Mac Haik Realty LLC Dec-14
Millennium Tower II 10353 Richmond Ave Westchase 417,000 100.0% BMS Management, Inc. Sep-15
Hilcorp Energy Tower 1110 Main St CBD 406,600 100.0% Hines Jul-15
3737 Buffalo Speedway 3737 Buffalo Speedway Ave Greenway Plaza 400,000 22.9% PM Realty Group Jan-15
Shell Woodcreek Phase 3 - B1 201 N Dairy Ashford Rd Katy Freeway West 336,000 100.0% Hines Mar-15
Shell Woodcreek Phase 3 - B2 201 N Dairy Ashford Rd Katy Freeway West 336,000 100.0% Hines Mar-15
Shell Woodcreek Phase 4 201 N Dairy Ashford Rd Katy Freeway West 336,000 100.0% Hines Mar-15
West Memorial Place 15375 Memorial Dr Katy Freeway West 334,147 40.8% Skanska Commercial Development Jan-15
Hughes Landing on Lake Woodlands - Bldg 1 1735 Hughes Landing Blvd Woodlands 331,840 100.0% The Woodlands Development Company Mar-15
Hughes Landing on Lake Woodlands - Bldg 2 1725 Hughes Landing Blvd Woodlands 317,052 100.0% The Woodlands Development Company Mar-15
Beltway @ Clay 4425 W Sam Houston Pky N FM 1960/Hwy 249 314,000 48.4% Transwestern Apr-15
Enclave Place 1414 Enclave Parkway Katy Freeway West 300,907 0.0% PM Realty Group Aug-15
Westchase Park II 3600 W Sam Houston Pky S Westchase 300,000 0.0% PM Realty Group Dec-14
Beltway Lakes Phase III 5775 N Sam Houston Pky E Northwest Far 271,384 0.0% Radler Enterprises, Inc. Sep-14
Beltway Lakes Phase IV 5725 N Sam Houston Pky W Northwest Far 271,384 0.0% Radler Enterprises, Inc. Mar-15
Kirby Grove 3801 Eastside Dr Greenway Plaza 260,437 39.6% Midway Companies Aug-15
Town Centre I 700 Town & Country Blvd Katy Freeway East 254,489 0.0% Moody Rambin Jan-15
Mustang Engineering 17325 Park Row Rd Katy Freeway West 225,885 100.0% Transwestern Jul-14
Legacy at Fallbrook 10720 W Sam Houston Pky N Northwest Far 206,754 0.0% Liberty Property Trust Jan-15
CityCentre Five 825 Town & Country Katy Freeway East 195,842 49.6% Midway Companies Apr-15
Jacobs Plaza 12140 Wickchester Ln Katy Freeway West 173,608 54.9% PM Realty Group Aug-14
Woodbranch Plaza IV 12120 Wickchester Ln Katy Freeway West 171,475 100.0% PM Realty Group Apr-15
San Felipe Place 2229 San Felipe Midtown 170,038 11.7% Hines Jul-15
Sierra Pines II 1575 Sawdust Rd Woodlands 153,810 0.0% Stream Realty Partners Aug-14
Katy Ranch Phase I 24275 Katy Fwy Southwest Outlier 151,187 0.0% Freeway Properties Mar-15
Park Ten Center 1 16200 Park Row Katy Freeway West 150,000 25.9% Lincoln Property Company Jul-14
Park Ten Center 2 16200 Park Row Katy Freeway West 150,000 0.0% Lincoln Property Company Sep-14
Air Liquide Center- North 9807 Katy Fwy Katy Freeway East 143,830 61.4% Anslow Bryant Construction Ltd. May-15
Beltway 8 Corporate Centre 5060 Westway Park Blvd Northwest Far 130,451 0.0% Panattoni Development Dec-14
Mason Creek Office Center II 21700 Merchants Way Katy Freeway West 127,955 0.0% Myers Crow & Saviers, LTD. Mar-15
Phase IV 2707 Commerce Center Blvd Southwest Outlier 125,000 0.0% Vista Companies Jun-15
Greenhouse Road at Park Row 2051 S Greenhouse Rd Katy Freeway West 114,345 19.0% D'Agostino Companies Oct-14
CGG Corporate Campus Phase 6 10300 Town Park Dr Westchase 106,992 100.0% Hines Sep-14
River Oaks District - Office 4444 Westheimer Rd Post Oak Park 99,826 0.9% Oliver McMillan Jan-15
Bldg 1 Grand Pky & Franz Rd @ Katy
Fort Bend Rd
Katy Freeway West 86,800 0.0% The Urban Companies Nov-14
Blvd Place 1 1 Blvd Pl Galleria/Uptown 83,073 95.6% Wulfe & Co. Jul-14
Black Forest Technology Park 2829 Technology Forest Blvd Woodlands 81,865 1.3% Black Forest Ventures Nov-14
Vision Park 128 Vision Park Blvd Woodlands 75,000 0.0% D'Agostino Companies Jul-14
Phase III 2717 Commerce Center Blvd Southwest Outlier 73,796 66.7% Vista Equities Group Inc. Oct-14
South Building 460 Wildwood Forest Dr Woodlands 64,535 22.6% Archway Properties Jul-14
1801 Binz Street 1801 Binz St South Main/Medical
Center
52,362 65.1% Balcor Commercial LLC Jul-14
Sea Scout Base Galveston 7509 Broadway St Southeast Outlier 50,000 100.0% Jacob White Nov-14
Timber Ridge Office Condos-Bld 1 32731 Egypt Ln Outlying Montgomery
Cnty
20,000 82.0% SHB Development LLC Jul-14
RESEARCH & FORECAST REPORT | Q2 2014 | HOUSTON OFFICE MARKET
COLLIERS INTERNATIONAL | P. 7
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RESEARCH & FORECAST REPORT | Q2 2014 | HOUSTON OFFICE MARKET