A recent report from JLL identified the 5 hottest Class A submarkets within the Houston Office Space Metro area. In addition, CBRE reports that office absorption growth has been steady in Houston.
“IN TEN OF THE LAST ELEVEN QUARTERS, THE MARKET HAS SURPASSED THE 900,000 SQ. FT. NET ABSORPTION MARK, WITH SIX OF THOSE NINE QUARTERS HAVING SEEN NET ABSORPTION OVER 1 MILLION SQ. FT.”
Here are the Houston office space submarkets that the JLL report identified:
- The Energy Corridor had the lowest Class A office vacancy in the first quarter of 2014 at 4.7 percent and one of the highest rental rates at $34.17 per square foot.
- Central Business District: 8.7 percent vacancy with an average rental rate of $40.51
- Westchase: 8 percent vacancy with an average rental rate of $37.60
- Greenway Plaza: 7 percent vacancy with an average rental rate of $34.93
- The Woodlands: 6.6 percent vacancy with an average rental rate of $37.84
JLL Report information via Houston Business Journal.
Unfortunately the Class B Office Space Market in Houston is not faring quite so well with a vacancy rate near 15% resulting in the average rental rate being over $10 / sf less than that of Class A space. If you are looking for a “deal” in Houston on office space, Class B will be what to consider.
Find out more by contacting our local Houston office space rep.
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By: James Osgood