Houston Office Market
| Average Asking Rent (Price/SF) | $29.15 |
| Vacancy Rate (%) | 24.4% |
| Net Absorption (SF) | -887,910 |
While the second quarter of 2021 saw a more gradual return to office by Houston’s work force, the overall momentum via a majority of market metrics show the market remains stalled. However, with almost 50 percent of the workforce returning to office per the latest Kastle data, and a forecast continuing to trend towards more than 50,000 net new jobs for the region by year’s end, the second half of 2021 is poised to begin a return of a more balanced office market within Houston, and 2022 is forecast to continue to that trend as the workforce and economy return to a new normal.
Download Houston Office Market Report 2Q21Houston Industrial Market
| Average Asking Rent (Price/SF) | $7.54 |
| Vacancy Rate (%) | 9.0% |
| Net Absorption (SF) | 3,391,481 |
Houston’s industrial market saw a continued return to positive momentum during the second quarter of 2021. As the second half of the year begins, Houston’s industrial market is slated to outperform other sectors of the overall commercial real estate landscape as the economy continues to rebound and vaccines make a return to a new normal more realistic. A continued demand for oil and oil derivatives and the economic rebound that has triggered on a national level has pushed WTI pricing north of $70/bbl and likewise has produced increased demand in the industrial sector. Also, 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. Further demand for industrial space has seen an increase in owners and developers looking at conversion opportunities of existing big box retail locations into distribution centers in order to help attract users looking to meet consumer demands. The metrics overall for the Houston industrial market in the second quarter show continued strength within the market with a forecast of continued growth in H2 2021.
Download Houston Industrial Market Report 2Q21