Quarter 4 2022 | Houston Office Market Report

HOUSTON - Rezul -- Houston currently has more people working than at any time in the City's history. We are the #1 destination for U-Haul (net positive population growth), our medical economy is booming, energy companies are healthy and investing capital and the Port of Houston is breaking records monthly. There are plenty of things to worry about in 2023, but Houston is well positioned to withstand any national or global downturn this year. There are a few office submarkets showing signs of real strength lately and there are market whispers of several multi-floor tenants in late stages of negotiations. That said, office users are still trying to come to grips with proper space allocations for their employees in the hybrid work-from-home model that most companies are adopting. As a result, we expect this year to show minor improvement in terms of occupancy and relatively stable rents.

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Patrick Duffy | President

Key Takeaways

• Houston office market records positive net absorption
• Vacancy down marginally by 10 basis points
• Year-end leasing activity up over previous year
• Spec suites continue to lease up quickly

Houston Highlights

Houston's office market posted positive net absorption in Q4 2022, recording 98,820 square feet, pushing the year-end total to positive net 284,877 square feet. The overall average vacancy rate dropped marginally by 10 basis points between quarters from 23.3% to 23.2%. Office inventory increased slightly as 54,800 square feet of new inventory was added and 1.9 million square feet of office space is under construction. Houston's average NNN rental rates increased over the year, but fell ...

See the full article here: https://www.colliers.com/en/research/houston/q4-2022-houston-office