Q2 2021 | Houston Office | Research & Forecast Report

HOUSTON - July 9, 2021 - PRLog -- Key Takeaways

• Vacancy continues to increase
• Absorption remains negative, but on a lesser extent than the previous quarter
• Deliveries and construction pipeline increased over the quarter
• Rental rates continue to drop

Houston Highlights

Houston's office market continues to post negative net absorption recording negative 474,700 square feet in Q2 2021, pushing the year-to-date total negative net absorption to 1,220,200 square feet. The vacancy rate rose over the quarter from 22.7% to 23.0%, a historical high. Houston's office inventory increased slightly with 483,600 square feet of new inventory added in Q2. There is still 3.5 million SF of office space under construction and most of the new inventory which is 60% pre-leased is expected to deliver this year. 2.4 million square feet is spec development, of which 58% is pre-leased.

Executive Summary
Commentary by Edward Edson, MCR, MBA | Principal

Oil prices are hitting seven-year highs; consumer confidence is jumping to the highest level since the pandemic started; Houston retail is making a solid comeback, and the industrial real estate market barely blinked during the pandemic, yet the office market seems to be a ship that doesn't want to rise with the tide. Even though Houston, Austin and Dallas are... To read the full report, click here: https://www.colliers.com/en/research/houston/q2-2021-hous...