Houston Office Market
4Q22
| Average Asking Rent (Price/SF) | $30.00 |
| Vacancy Rate (%) | 25.2% |
| Net Absorption (SF) | -485,394 |
Houston’s office market continued to battle high vacancy and diminished demand in the fourth quarter of 2022. Leasing activity slowed to 2.6 million square feet in the fourth quarter of 2022. Year to date, leasing activity is down 3.1% from totals seen in 2021. The sublease market gained 271,793 square feet as tenants continued to right size their footprints. Since the start of the year, almost 1.3 million square feet of sublease space has hit the Houston office market. Net absorption turned negative in the fourth quarter of 2022, but the market closed out the year with 403,419 square feet of positive absorption overall.
Download Houston Office Market Report 4Q22Houston Industrial Market
4Q22
| Average Asking Rent (Price/SF) | $8.58 |
| Vacancy Rate (%) | 5.6% |
| Net Absorption (SF) | 4,500,976 |
The Houston industrial market’s construction pipeline expanded while demand softened in the fourth quarter of 2022. The market closed the quarter with 4.5 million square feet of positive absorption. Absorption for the year totaled 28.0 million square feet, a 15.0% decrease from 2021 totals. The vacancy rate dropped slightly to 5.6%, maintaining its downward trend. Although absorption slowed in the fourth quarter of 2022, vacancy continues to decrease, dropping 90 basis points year over year. Rental rates have increased 11.0% year over year, driven by new product commanding higher pricing and sustained demand. Overall asking rents rose to $8.58/SF, an increase of 0.7% quarter over quarter. Rental rates remain the highest in the Southwest submarket, at $10.32/SF.
Download Houston Industrial Market Report 4Q22