Q3 2018 Houston Office Research & Forecast Report

HOUSTON - Oct. 12, 2018 - PRLog -- Houston's office market is finally on the mend

Houston's office market made more progress in the third quarter than it has in the past three years, posting positive absorption of 901,844 SF, a substantial increase from the negative 0.7 million SF of absorption recorded one year ago. Leasing activity increased 22% over the quarter, and Houston's overall vacancy rate is finally below 20%.

Houston's job growth increased by 3.7% over the year according to recent data released by the US Bureau of Labor Statistics. The Houston MSA created 101,200 jobs (not seasonally adjusted) between August 2017 and August 2018, growing faster than Texas and the U.S. during the same period. Employment sectors with the most substantial growth includes the construction sector which grew by 13.5% over the year, and professional and business services which increased by 7.2%.

According to the U.S. Energy Information Administration, Gulf Coast refineries are taking in record levels of crude oil. Crude oil exports were up significantly in the first half of 2018 and West Texas Intermediate crude oil prices jumped in the first week of October 2018, exceeding $75.00 per barrel for first time since November 2014. The increase in crude oil production, along with the increase in crude oil prices and significant job growth are all indicators that Houston's economy is bustling and it is positive news for Houston's office market.

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