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

Adapting to Change: Understanding Houston’s Industrial Market Evolution in Q4 2023. Key Takeaways Construction starts slow Deliveries and absorption drop Leasing activity up for the quarter Vacancy rises Houston Highlights The industrial market’s activity slowed on all levels during the fourth quarter, with new supply outpacing net absorption each quarter during the year. For this year, twice as much new product, 31.6 MSF, has been delivered than absorbed, with completions just under the record-level 32.9 MSF in 2020. Leasing activity jumped 1.1 MSF to 8.9 MSF from the previous quarter, wi ..read more

Navigating the Complexities of Commercial Real Estate to Secure Your Ideal Office Space Securing the correct office space is critical for any firm in the fast-paced world of commercial real estate. However, the lease negotiation process can be intimidating, especially in the complex office and healthcare real estate sectors. This blog post is intended to simplify the process and offer you strategic ideas to effectively negotiate your lease. Recognize Market Dynamics Before entering the negotiation arena, familiarize yourself with current office market trends. Understanding the vacancy rates, t ..read more

The Power Duo in Commercial Real Estate: Brokers and Lawyers in Office Lease Negotiations In the intricate world of commercial real estate, the collaboration between brokers and lawyers during office lease negotiations is not just beneficial; it’s essential. This article delves into the critical roles both parties play, shedding light on why a tenant’s representation is most robust when these professionals join forces. The Complexity of Lease Agreements Contrary to common perception, commercial lease agreements are far from simple. Tenants may easily overlook the complexity of these documents ..read more

The Tenant Advisor Recognized Number One Among the Top 70 Houston Real Estate Blogs and Websites We’re thrilled to announce that The Tenant Advisor has been recognized as the leading Houston real estate blog and website for 2023 by FeedSpot. This prestigious accolade places us at the forefront of Houston’s vibrant real estate blogging scene. FeedSpot’s comprehensive list of the best Houston real estate blogs is compiled meticulously, considering numerous factors. These include overall web traffic, the number of followers on social media platforms, the domain authority of the blogs, and the re ..read more

U.S. Office Vacancy Surges as Second Wave of Negative Absorption Rolls In The U.S. office market continued into uncharted waters as softening market fundamentals collided with strong headwinds driven by a stagnating return to the office, elevated interest rates, and a slowing economy. As a result, net absorption remained negative, while vacancy hit a new record high. On a brighter note, total sublease space retreated from its record high last quarter. The vacancy rate increased by 30 basis points for the second consecutive quarter. At 16.7%, the rate rose 140 basis points year-over-year and ..read more