Houston Office Market
| Average Asking Rent (Price/SF) | $29.28 |
| Vacancy Rate (%) | 25.1% |
| Net Absorption (SF) | -595,098 |
Houston’s office market is still contending with setbacks from the pandemic, including an oversupply of space and diminished demand. Revised absorption totals for the first quarter of 2022 totaled 1,080,582 square feet, a stark contrast from the nearly 600,000 square feet of negative absorption which occurred in the second quarter. Supply still outpaces demand in the Houston market, particularly amongst newer product, as leasing activity has decreased by 1.2 million square feet year-over-year. Tenants put 290,479 square feet of sublease space on the market in the second quarter of 2022. Since the end of 2021, over 665,700 square feet of sublease space has hit the already-saturated market. Strong leasing in the early quarters of 2021 may help to put absorption back in the black in the second half of 2022 as those tenants begin to occupy new spaces.
Houston Industrial Market
| Average Asking Rent (Price/SF) | $8.32 |
| Vacancy Rate (%) | 5.7% |
| Net Absorption (SF) | 6,905,398 |
The second quarter of 2022 closed a four-quarter period of record-high demand in the Houston industrial market with 40.4 million square feet of net absorption. The market closed the quarter with 6.9 million square feet of positive absorption, with only the Central Business District submarket realizing negative absorption. Vacancy continues to trend downward, dropping 290 basis points year-over-year to a current rate of 5.7%. Total availability decreased for the sixth consecutive quarter and is 9.3% market-wide. New construction and heightened demand continue to drive rental rate hikes. Total asking rent increased by 8.6% year-over-year and stands at $8.32/SF.
Download Houston Industrial Market Report 2Q22