Houston Office market kicks year off in much the same way it ended 2021.
AN ANALYSIS OF ACTIVITY DURING THE FIRST MONTH OF THE YEAR—JANUARY 2022 COMPARED TO JANUARY 2021.
HOUSTON OFFICE VACANCY AT 24.8% One month into 2022, overall vacancy is at 24.8%, up 90 basis points from this time last year. Availability is at 28.5%, down 10 basis points from January 2021. The difference between this figure and the vacancy rate reflects expected future move-outs. The Houston office market has recorded 874,000 sq. ft. of leasing activity—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) is at positive 782,000 sq. ft., up from negative 255,000 sq. ft. year-over-year. The Houston average asking full-service rent is at $29.34 per sq. ft., up $0.05 from this time last year.
POSITIVE NET ABSORPTION IN JANUARY Among the notable move-ins that contributed to the positive net absorption in January in the Houston office market include Cadence Bank moving its headquarters to the renovated Park Towers office building at 1333 W. Loop South, taking 82,215 sq. ft. of space. The lease included adding the bank’s name to the top of the tower. In October 2021, Cadence Bancorporation announced the successful closing of its merger into BancorpSouth Bank, and the surviving company, BancorpSouth, was renamed Cadence Bank. Also, Sunnova Energy Corp, moved into 64,017 sq. ft. at 7310 Eldridge Parkway, following signing the lease in December 2021.
DECEMBER 2021 RANKS BEST DECEMBER FOR JOB GROWTH ON RECORD The Houston metro has recouped 316,700 of the 361,400 jobs lost in March and April of 2020, according to the Greater Houston Partnership’s December 2021 employment update. The Houston office employment industry/ sectors that are fully recovered include administrative support, education services, finance and insurance, health care and social assistance, and professional, scientific, and technical services, however, it’s not clear how many of the office-using jobs will translate to the need for more office space.
Director of Research
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