Q1 2022 | Houston Office Market Report

By: Colliers | Houston
 
HOUSTON - April 18, 2022 - PRLog -- "Tenants and landlords are struggling with an environment where construction is much more complicated than it was previously. Both pricing and timing are harder to forecast. Tenants looking for highly customized space need to start the process at least four to six months earlier than normal and landlords are leaning into pre-built "spec" suites as a solution for smaller tenants."
Patrick Duffy, MCR | President | Houston

Key Takeaways
  • Houston office market records positive net absorption
  • Vacancy rates down slightly
  • Annual leasing activity down 5%
  • Tenants and landlords continue to see longer construction times
Houston Highlights

Houston's office market posted positive net absorption in Q1 2022, recording 899,763 square feet. About half of the absorption was Hewlett Packard Enterprise's move into two new buildings in The Woodlands submarket. The buildings HPE left unoccupied were sold and are expected to be placed on the rental market later in the year, which will result in about 689,000 square feet of negative absorption. Houston's overall average vacancy rate fell 20 basis points between quarters from 23.3% to at 23.1%. Houston's office inventory increased with 529,900 square feet of new inventory added in Q1. There is still 1.3 million SF of office space under construction.

Executive Summary
Commentary by Neil Potter | Senior Project Manager

The construction industry has faced the impact in several areas due to the pandemic-induced supply chain disruptions of 2021. Material procurement has become challenging with the associated cost escalations and availability. Other specialized components are continuing to... To read the full report, click here: https://www.colliers.com/en/research/houston/q1-2022-hous...

Contact
Lisa Bridges | Director of Market Research
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Tags:Houston Office Market Report
Industry:Real Estate
Location:Houston - Texas - United States
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