Q3 2021 | Houston Office Market Report

HOUSTON - Txylo -- "The office market stabilized in Q3 as expected. Absorption was only very slightly positive, but the positive absorption reverses what had been steady declines. The COVID Delta variant definitely caused many companies to further delay action but, in Houston at least, the move back to the office has been steadily increasing."
Patrick Duffy, MCR | President | Houston

Key Takeaways
  • Houston office workers heading back to office
  • Vacancy continues to increase
  • Absorption turns positive
  • Construction pipeline decreases over the quarter

Houston Highlights

Houston's office market posted positive absorption for the first time in 2 years, recording 27,430 square feet in Q3 2021. The vacancy rate rose over the quarter from 22.9% to 23.3%, a historical high. Houston's office inventory increased slightly with 1,018,000 square feet of new inventory added in Q3. There is still 3.2 million SF of office space under construction and most of the new inventory which is 47% pre-leased is expected to deliver this year. 2.3 million square feet is spec development, of which 60% is pre-leased.

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Executive Summary

Commentary by Taylor Wright | Vice President

The spot price of West Texas Intermediate or "WTI" is now at multi-year highs, currently trading around $78.00 per barrel. As commercial real estate professionals, even though we're not in Oil and Gas directly, living in Houston, we're all in Oil and Gas and, as such, pay close attention to commodities pricing. According to the Greater Houston Partnership, Oil and Gas directly contributes... To read the full report, click here: https://www.colliers.com/en/research/houston/q3-2021-houston-office

Lisa Bridges | Director of Market Research

Source: Colliers | Houston
Filed Under: Real Estate

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