Houston Office Market Update: Q2 2024 Sees Improvement Amidst High Vacancy Rates   Key Takeaways for the Houston Office Market Office vacancy rate stabilizes Sublease space up but still low Net absorption still negative Leasing volume, rents up slightly Houston Office Market Highlights Although Houston’s office market continues to experience net absorption losses, the second quarter saw a negative 262,040 SF, which is an improvement from the first quarter. The overall average vacancy rate remained steady at 26.9% for the second consecutive quarter, up from 26.0% year-over-year. Le ..read more

Houston Retail Vacancy  Remains at Record Lows Key Takeaways Vacancy marginally declines Absorption plunges Leasing activity stabilizes Rental rates increase Houston Retail Market Highlights Houston’s vacancy rate marginally declined to 5.2% during the first quarter although demand plunged to 9,806 SF. Although net absorption maintained a positive level since 2020, the current quarter represents only 2.2% of the 445,765 SF of new supply. The Southwest led all submarkets for the highest activity levels with 83,859 SF absorbed, 201,380 SF delivered, and 573,820 SF under construction ..read more

Resilience Amid Challenges in the Dallas – Fort Worth Office Market Key Takeaways In the first part of 2024, the DFW office market saw positive absorption of 175,290 square feet, with contributions from all classes. Class A and B vacancy rates, currently at their highest levels in ten years, saw no movement from the previous quarter. For the first time in several quarters, the rental rates for Class A and B properties experienced a slight decline. Sublease space, which encompasses more than 10 million square feet, remains a significant influence in the market.   Dallas – Forth Worth ..read more

Q1 2024 Houston Industrial Market: Slowing Activity, Rising Vacancy, and Supply Outpacing Demand Key Takeaways First-quarter activity is sluggish Construction volume continues to decline. Deliveries and absorption decline Rental rates are up 8.7% for year Houston Highlights The Houston industrial market started the year continuing its slowdown trend in 2023, reporting reduced activity on all levels during the first quarter. New supply outpaced net absorption, with the first quarter reporting new product of 6.0M SF, 60.0% more than the 2.4M SF absorbed. This level of absorption was last see ..read more

The Austin Office Space Market Navigating the Waves Key Takeaways New Supply: Close to 500,000 square feet, compared to 154,000 square feet in the previous quarter Net Absorption: 287,900 square feet, marking a decrease from Q4’s 321.8 thousand square feet, but an improvement from early 2023’s negative absorption Overall Vacancy: 22.5%, a slight increase from 22.4% in Q4 2023, reflecting continued challenges in the market Asking Rents: $41.52/SF, slightly down from $43.12/SF in Q4 2023   The first quarter of 2024 saw the Austin office space market face continued challenges amidst fl ..read more

Healthcare Real Estate Outlook Remains Bright in an Evolving Environment The medical office sector continues to perform well, with low vacancy rates and record-setting asking rents. Robust demand is outpacing supply, yet many developers are hesitant to break ground due to elevated construction costs. Medical offices were not immune to the disruptions in the capital markets from the Federal Reserve’s aggressive rate increases. Consequently, sales volume declined noticeably in 2023, as higher cap rates and downward pricing pressure created a significant “bid-ask” spread. Despite these headwin ..read more

Houston Clinches Top Spot in National Medical Office Building Market with Record-Breaking Absorption and Construction in 2023 Houston Medical Office Market Key Takeaways: Houston ranks No. 1 in total SF for both construction and net absorption among the top 50 MOB markets nationally Vacancy drops Positive absorption  for the 12th straight quarter Construction is down YoY, but deliveries nearly double Houston Medical Office Market Highlights Houston’s medical office building (MOB) market experienced strong activity in 2023, recognized as the No. 1 market in terms of net absorption and ..read more

U.S. Office Fundamentals Remain Week as 2023 Closes The U.S. office market limped into 2023, and though the economy did not tip into the expected recession, the year concluded with numerous lingering questions regarding the overall health of the office market. During the year, the vacancy rate climbed 120 basis points to 16.9%, easily surpassing the prior peak of 16.3% at the height of the Global Financial Crisis (GFC). Net absorption, which measures the change in occupied office inventory, declined by 16.9 million square feet during the fourth quarter, resulting in a yearly decrease of jus ..read more

The Dallas-Fort  Worth Office Market  Adapts to New Norms Key Takeaways The total absorption for the fourth quarter was an impressive 501,854 square feet, culminating in an annual total of -50,178. Class A vacancy held steady at 24%, while class B dropped 20 basis points to 17.9%. Rental rates trended higher again, setting a new record of $31.05. Available sublease space has continued to surpass the ten million square feet mark for the fifth consecutive quarter. Rightsizing Reshapes Tenant Spaces Navigating economic challenges, DFW’s resilient economy thrived, boasting record-hig ..read more

The Houston Retail Market Shows Continued Signs or Resilience in 2023  Key Takeaways Vacancy marginally improves Absorption rebounds for quarter and year Leasing activity decreases slightly Rental rates stabilize Houston Retail Market Highlights Houston’s overall retail vacancy rate marginally improved to 6.4% from 6.6% in the third quarter. Demand outpaced new supply, with more than twice the square footage absorbed as delivered during the quarter while prolonging a strong annual absorption trend for the third straight year. In 2023, annual absorption totaled 1.5 MSF while 1.0 MSF d ..read more