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The Rise and Fall of the Houston Office Market

A weakened energy market combined with slow job growth hasn’t done the Houston office market any favors. Over the past few years, Houston has struggled, but now the area is seeing signs of stabilization due to a decrease in available sublease space and a decline in energy sector layoffs. A Year of Fluctuations – Q1 2016 to Q1 2017 At the end of Q1 2016, the Houston office market had a 15.3 percent vacancy rate. The average vacancy rate rose by 100 basis points during Q1 2017 for an 18.5 percent vacancy rate. So from Q1 2016 to the end of Q1 2017, the vacancy rate rose by 320 basis points. Although vacancies rose across the board, this rate is not the same throughout the metro area. In suburban Houston, the Q1 2017 Class A vacancy rate was 20.5 percent, up from 16 percent in Q1 2016. Houston’s CBD (central business district) had a Class […]

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