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Houston Market Reports

Houston Office Market

Average Asking Rent (Price/SF) $29.45
Vacancy Rate (%) 21.3%
Net Absorption (SF) (401,213)

Houston rounded out the second quarter on relatively soft terms. Overall, the market negatively absorbed 401,213 square feet, pushing vacancy rates up to 21.3%. The market delivered two new buildings totaling 838,593 square feet in May; one of the new buildings was Skanska's project on 800 Capitol Street, now formerly known as Bank of America Tower. Bank of America occupies approximately 27.0% of the building. Skanska is rumored to be in the process of placing the building on the capital markets with an estimated valuation of $550.0 million, according to those familiar with the deal.

Houston Industrial Market

Average Asking Rent (Price/SF) $7.19
Vacancy Rate (%) 6.2%
Net Absorption (SF) 2,276,840

Houston's industrial market ends the second quarter of 2019 displaying healthy fundamentals. Overall, the market absorbed 2.27 million square feet of space, a 1.1% increase the prior quarter. The market delivered 5.32 million square feet of inventory, driving an increase in vacancy. Vacancy in the market was recorded at 6.2%, marking the first time in 30 quarters that market vacancy exceeded 6%. Leasing activity appears to wane a bit at 4.7 million square feet. However, this softening could be a transitionary period as demand for the newly developed products come to materialize.



Houston Office Market Report
2Q19
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Houston Industrial Market Report
2Q19
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