Houston Office Market
| Average Asking Rent (Price/SF) | $29.24 |
| Vacancy Rate (%) | 23.5% |
| Net Absorption (SF) | -1,033,871 |
While Houston and the surrounding counties welcomed the COVID vaccine role out and corresponding reopening of the local economy in the first quarter, the Houston office market continued to see far reaching affects of the pandemic. The market’s major metrics continue to trend negatively as the market remains forecast to be tenant favorable for the remainder of 2021. However, slim glimmers of positive momentum in terms of investment capital, leasing size and revised upward projections of net new job growth for the region in 2021 give the market reason to believe that the worst of the downturn has past.
Download Houston Office Market Report 1Q21Houston Industrial Market
| Average Asking Rent (Price/SF) | $7.95 |
| Vacancy Rate (%) | 9.2% |
| Net Absorption (SF) | 590,951 |
Houston’s industrial market felt the pains of the COVID impact in 2020, juts not on the same scale as other property types. As the calendar turned to 2021, the industrial sector of Houston’s commercial real estate has shown to be the first to begin to emerge from the downturn. As the year continues however, Houston’s industrial market as a whole is forecast to continue on a more tenant-favorable tract as the vaccine role out will continue to dominate the market discussion. As it continues to warrant watching, the COVID-19 impact for distribution may be seen as Industrial should continue to fare best among major property types, particularly as continued on-line or BOPIS dominate the new normal on how consumers purchase goods, making last-mile distribution and logistics space all the more valued. As consumers’ changing demand and spending habits for food and grocery delivery continue to evolve in 2021 and even after a return to normal, continued demand for cold storage and last mile distribution will be key to a stabilized industrial market in Houston. A stabilized WTI price of greater than $55/bbl over the past 90 days has started to alleviate concerns about longer term oil price instability and also helps to shape a more positive outlook for industrial during the coming year.
Download Houston Industrial Market Report 1Q21