Houston Submarket Commercial Office Leasing Report for First Half of 2018

CXRE » Office Leasing » Houston Submarket Commercial Office Leasing Report for First Half of 2018

Based on our research, we believe the greater Houston region is seeing an uptick in major commercial real estate values. The uptick is due primarily to increases in both commercial office leasing rates and office building occupancy increasing the yield on commercial real estate investments across nearly all Houston submarkets.

Commercial Office Leasing Across Houston’s Submarkets

  • Our records indicate the Austin County, Texas submarket has approximately 38 commercial office buildings, with a total of 250359 net rentable office space square feet. The current vacancy of Austin County commercial office real estate is approximately 0.0308093311768921% and the average quoted commercial office leasing rates are hovering around $16.122375 per square foot per year.
  • Our records indicate the Baytown submarket has approximately 133 commercial office buildings, with a total of 1660125 net rentable office space square feet. The current vacancy of Baytown commercial office real estate is approximately 0.0665867367314766% and the average quoted commercial office leasing rates are hovering around $21.6603333084596 per square foot per year.
  • Our records indicate the Bellaire submarket has approximately 87 commercial office buildings, with a total of 4967064 net rentable office space square feet. The current vacancy of Bellaire commercial office real estate is approximately 0.0944452002226842% and the average quoted commercial office leasing rates are hovering around $24.3793404562745 per square foot per year.
  • Our records indicate the CBD submarket has approximately 157 commercial office buildings, with a total of 50489380 net rentable office space square feet. The current vacancy of CBD commercial office real estate is approximately 0.191073156656246% and the average quoted commercial office leasing rates are hovering around $39.8976707346001 per square foot per year.
  • Our records indicate the Conroe submarket has approximately 255 commercial office buildings, with a total of 2603111 net rentable office space square feet. The current vacancy of Conroe commercial office real estate is approximately 0.0966931008687897% and the average quoted commercial office leasing rates are hovering around $22.8842410221019 per square foot per year.
  • Our records indicate the E Fort Bend Co/Sugar. submarket has approximately 394 commercial office buildings, with a total of 9854937 net rentable office space square feet. The current vacancy of E Fort Bend Co/Sugar. commercial office real estate is approximately 0.0994957817681797% and the average quoted commercial office leasing rates are hovering around $26.0054246207286 per square foot per year.
  • Our records indicate the FM 1960/Champions submarket has approximately 249 commercial office buildings, with a total of 4341556 net rentable office space square feet. The current vacancy of FM 1960/Champions commercial office real estate is approximately 0.156377711457071% and the average quoted commercial office leasing rates are hovering around $15.9858459359279 per square foot per year.
  • Our records indicate the FM 1960/Hwy 249 submarket has approximately 396 commercial office buildings, with a total of 8539759 net rentable office space square feet. The current vacancy of FM 1960/Hwy 249 commercial office real estate is approximately 0.0968332682056919% and the average quoted commercial office leasing rates are hovering around $24.6334583033025 per square foot per year.
  • Our records indicate the FM 1960/I-45 North submarket has approximately 104 commercial office buildings, with a total of 2485983 net rentable office space square feet. The current vacancy of FM 1960/I-45 North commercial office real estate is approximately 0.257938861887054% and the average quoted commercial office leasing rates are hovering around $19.6749772984192 per square foot per year.
  • Our records indicate the Galleria/Uptown submarket has approximately 64 commercial office buildings, with a total of 16834469 net rentable office space square feet. The current vacancy of Galleria/Uptown commercial office real estate is approximately 0.163785336699156% and the average quoted commercial office leasing rates are hovering around $37.4812280832989 per square foot per year.
  • Our records indicate the Greenspoint/IAH submarket has approximately 53 commercial office buildings, with a total of 3129296 net rentable office space square feet. The current vacancy of Greenspoint/IAH commercial office real estate is approximately 0.242924497239572% and the average quoted commercial office leasing rates are hovering around $18.9143758106032 per square foot per year.
  • Our records indicate the Greenspoint/N Belt W. submarket has approximately 115 commercial office buildings, with a total of 10846198 net rentable office space square feet. The current vacancy of Greenspoint/N Belt W. commercial office real estate is approximately 0.437575969031254% and the average quoted commercial office leasing rates are hovering around $20.1401488658009 per square foot per year.
  • Our records indicate the Greenway Plaza submarket has approximately 275 commercial office buildings, with a total of 13091237 net rentable office space square feet. The current vacancy of Greenway Plaza commercial office real estate is approximately 0.138218731075194% and the average quoted commercial office leasing rates are hovering around $33.8211642022672 per square foot per year.
  • Our records indicate the Gulf Freeway/Pasadena. submarket has approximately 616 commercial office buildings, with a total of 7863209 net rentable office space square feet. The current vacancy of Gulf Freeway/Pasadena commercial office real estate is approximately 0.124834210682507% and the average quoted commercial office leasing rates are hovering around $20.9329186152199 per square foot per year.
  • Our records indicate the I-10 East submarket has approximately 129 commercial office buildings, with a total of 1305666 net rentable office space square feet. The current vacancy of I-10 East commercial office real estate is approximately 0.114654824341213% and the average quoted commercial office leasing rates are hovering around $16.3801959052776 per square foot per year.
  • Our records indicate the Katy Freeway East submarket has approximately 258 commercial office buildings, with a total of 11747929 net rentable office space square feet. The current vacancy of Katy Freeway East commercial office real estate is approximately 0.118232423594153% and the average quoted commercial office leasing rates are hovering around $31.4077035273046 per square foot per year.
  • Our records indicate the Katy Freeway West submarket has approximately 256 commercial office buildings, with a total of 28319473 net rentable office space square feet. The current vacancy of Katy Freeway West commercial office real estate is approximately 0.241116939404309% and the average quoted commercial office leasing rates are hovering around $27.7266237088509 per square foot per year.
  • Our records indicate the Katy/Grand Parkway W. submarket has approximately 389 commercial office buildings, with a total of 6083611 net rentable office space square feet. The current vacancy of Katy/Grand Parkway W. commercial office real estate is approximately 0.121376304053585% and the average quoted commercial office leasing rates are hovering around $27.8838547164614 per square foot per year.
  • Our records indicate the Kingwood/Humble submarket has approximately 217 commercial office buildings, with a total of 3433021 net rentable office space square feet. The current vacancy of Kingwood & Humble commercial office real estate is approximately 0.0832755471825216% and the average quoted commercial office leasing rates are hovering around $24.6745853976996 per square foot per year.
  • Our records indicate the Liberty County submarket has approximately 65 commercial office buildings, with a total of 341290 net rentable office space square feet. The current vacancy of Liberty County commercial office real estate is approximately 0.0241908227208409% and the average quoted commercial office leasing rates are hovering around $14.01123 per square foot per year.
  • Our records indicate the Midtown submarket has approximately 530 commercial office buildings, with a total of 9515236 net rentable office space square feet. The current vacancy of Midtown commercial office real estate is approximately 0.09865092209899% and the average quoted commercial office leasing rates are hovering around $30.0596024724593 per square foot per year.
  • Our records indicate the NASA/Clear Lake submarket has approximately 516 commercial office buildings, with a total of 10440743 net rentable office space square feet. The current vacancy of NASA/Clear Lake commercial office real estate is approximately 0.16605151017022% and the average quoted commercial office leasing rates are hovering around $20.8238795050894 per square foot per year.
  • Our records indicate the North Loop West submarket has approximately 333 commercial office buildings, with a total of 6110610 net rentable office space square feet. The current vacancy of North Loop West commercial office real estate is approximately 0.141779116065282% and the average quoted commercial office leasing rates are hovering around $24.970236591431 per square foot per year.
  • Our records indicate the Northeast Near submarket has approximately 143 commercial office buildings, with a total of 2232421 net rentable office space square feet. The current vacancy of Northeast Near commercial office real estate is approximately 0.0589812198955851% and the average quoted commercial office leasing rates are hovering around $19.1794521934459 per square foot per year.
  • Our records indicate the Northeast Outlier submarket has approximately 82 commercial office buildings, with a total of 883965 net rentable office space square feet. The current vacancy of Northeast Outlier commercial office real estate is approximately 0.0602905626205756% and the average quoted commercial office leasing rates are hovering around $22.8691908784085 per square foot per year.
  • Our records indicate the Northwest Far submarket has approximately 128 commercial office buildings, with a total of 4417915 net rentable office space square feet. The current vacancy of Northwest Far commercial office real estate is approximately 0.200912945421741% and the average quoted commercial office leasing rates are hovering around $17.5234241730256 per square foot per year.
  • Our records indicate the Northwest Near submarket has approximately 50 commercial office buildings, with a total of 1429266 net rentable office space square feet. The current vacancy of Northwest Near commercial office real estate is approximately 0.0691796779676852% and the average quoted commercial office leasing rates are hovering around $17.5945825147348 per square foot per year.
  • Our records indicate the Northwest Outlier submarket has approximately 223 commercial office buildings, with a total of 1676648 net rentable office space square feet. The current vacancy of Northwest Outlier commercial office real estate is approximately 0.147777287517959% and the average quoted commercial office leasing rates are hovering around $26.3411850185633 per square foot per year.
  • Our records indicate the Outlying Chambers Co. submarket has approximately 17 commercial office buildings, with a total of 49401 net rentable office space square feet. The current vacancy of Outlying Chambers County commercial office real estate is approximately 0% and the average quoted commercial office leasing rates are hovering around $0 per square foot per year.
  • Our records indicate the Outlying Montgomery County. submarket has approximately 177 commercial office buildings, with a total of 1427627 net rentable office space square feet. The current vacancy of Outlying Montgomery County. commercial office real estate is approximately 0.138929449186704% and the average quoted commercial office leasing rates are hovering around $23.321193014289 per square foot per year.
  • Our records indicate the Outlying Waller County submarket has approximately 19 commercial office buildings, with a total of 107391 net rentable office space square feet. The current vacancy of Outlying Waller County. commercial office real estate is approximately 0.0244147663069107% and the average quoted commercial office leasing rates are hovering around $0 per square foot per year.
  • Our records indicate the Post Oak Park submarket has approximately 41 commercial office buildings, with a total of 4770644 net rentable office space square feet. The current vacancy of Post Oak Park commercial office real estate is approximately 0.25615161431631% and the average quoted commercial office leasing rates are hovering around $36.0198482879213 per square foot per year.
  • Our records indicate the Richmond/Fountainview. submarket has approximately 113 commercial office buildings, with a total of 2152383 net rentable office space square feet. The current vacancy of Richmond/Fountainview. commercial office real estate is approximately 0.084306374899589% and the average quoted commercial office leasing rates are hovering around $17.6576202801515 per square foot per year.
  • Our records indicate the Riverway submarket has approximately 22 commercial office buildings, with a total of 3085476 net rentable office space square feet. The current vacancy of Riverway commercial office real estate is approximately 0.192767703098164% and the average quoted commercial office leasing rates are hovering around $31.3866676503135 per square foot per year.
  • Our records indicate the San Felipe/Voss submarket has approximately 47 commercial office buildings, with a total of 5334957 net rentable office space square feet. The current vacancy of San Felipe/Voss commercial office real estate is approximately 0.203462668332348% and the average quoted commercial office leasing rates are hovering around $29.8268000564197 per square foot per year.
  • Our records indicate the San Jacinto County submarket has approximately 1 commercial office buildings, with a total of 34139 net rentable office space square feet. The current vacancy of San Jacinto County commercial office real estate is approximately 0% and the average quoted commercial office leasing rates are hovering around $0 per square foot per year.
  • Our records indicate the South submarket has approximately 246 commercial office buildings, with a total of 3100449 net rentable office space square feet. The current vacancy of South commercial office real estate is approximately 0.0795395641660836% and the average quoted commercial office leasing rates are hovering around $24.5161114530666 per square foot per year.
  • Our records indicate the South Hwy 35 submarket has approximately 146 commercial office buildings, with a total of 791929 net rentable office space square feet. The current vacancy of South Hwy 35 commercial office real estate is approximately 0.0463543176368284% and the average quoted commercial office leasing rates are hovering around $18.0179596823458 per square foot per year.
  • Our records indicate the South Main/Medical C. submarket has approximately 232 commercial office buildings, with a total of 13260676 net rentable office space square feet. The current vacancy of South Main/Medical C. commercial office real estate is approximately 0.0390498833229456% and the average quoted commercial office leasing rates are hovering around $28.0870286306176 per square foot per year.
  • Our records indicate the Southeast Outlier submarket has approximately 335 commercial office buildings, with a total of 4307008 net rentable office space square feet. The current vacancy of Southeast Outlier commercial office real estate is approximately 0.0969314110734489% and the average quoted commercial office leasing rates are hovering around $20.1482905780554 per square foot per year.
  • Our records indicate the Southwest Beltway 8 submarket has approximately 191 commercial office buildings, with a total of 7616205 net rentable office space square feet. The current vacancy of Southwest Beltway 8 commercial office real estate is approximately 0.149814064836204% and the average quoted commercial office leasing rates are hovering around $17.6051194128007 per square foot per year.
  • Our records indicate the Southwest Far submarket has approximately 88 commercial office buildings, with a total of 1426945 net rentable office space square feet. The current vacancy of Southwest Far commercial office real estate is approximately 0.186116128761929% and the average quoted commercial office leasing rates are hovering around $24.2412109730773 per square foot per year.
  • Our records indicate the Southwest Outlier submarket has approximately 200 commercial office buildings, with a total of 1729287 net rentable office space square feet. The current vacancy of Southwest Outlier commercial office real estate is approximately 0.128512454974292% and the average quoted commercial office leasing rates are hovering around $24.4381662944666 per square foot per year.
  • Our records indicate the Southwest/Hillcroft submarket has approximately 106 commercial office buildings, with a total of 5352416 net rentable office space square feet. The current vacancy of Southwest/Hillcroft commercial office real estate is approximately 0.166366640186239% and the average quoted commercial office leasing rates are hovering around $16.8599084204399 per square foot per year.
  • Our records indicate The Woodlands submarket has approximately 603 commercial office buildings, with a total of 20626897 net rentable office space square feet. The current vacancy of The Woodlands commercial office real estate is approximately 0.0971260752222639% and the average quoted commercial office leasing rates are hovering around $28.968211798407 per square foot per year.
  • Our records indicate the West Belt submarket has approximately 104 commercial office buildings, with a total of 6908394 net rentable office space square feet. The current vacancy of West Belt commercial office real estate is approximately 0.184098944744072% and the average quoted commercial office leasing rates are hovering around $27.3903612856897 per square foot per year.
  • Our records indicate the Westchase District submarket has approximately 135 commercial office buildings, with a total of 18689853 net rentable office space square feet. The current vacancy of Westchase District commercial office real estate is approximately 0.212112249291289% and the average quoted commercial office leasing rates are hovering around $27.9009255145773 per square foot per year.

Again, in preparing this report, commercial office leasing in the various Houston submarkets is strong and we recommend increased focus in this region for the rest of 2018 and into 2019. This is a strong commercial real estate market.

 

 

In preparing this report, we referenced Reonomy, CoStar and internal reporting.

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