Download the PDF
Office market indicators a mixed bag nearing end of first quarter. The Houston office market continues to display mixed signals nearing the end of the first quarter of 2018. While the vacancy rate edged up slightly (by a modest 10 basis points), the 1.2 million sq. ft. of office space currently under construction is already about 50% pre-leased. New addition to the Galleria skyline The Post Oak at 1600 West Loop South—the mixed-use luxury high-rise features boutique office space, a hotel, residences and retailers—delivered 104,579 sq. ft. of office space to the market in 2018—with 32% of that space available for lease.
Apache renews 524,342-sq. ft. Galleria/Uptown lease. The oil and gas exploration and production company will continue to occupy all of the 24-story, 396,432-sq.-ft., Class A office building at 2000 Post Oak Blvd., and will also continue its lease of 127,910 sq. ft. at 1990 Post Oak Blvd. The 60-month renewal extends the Apache lease through 2024 in the Post Oak Central complex.
Office sales volume up 3.5% year-over-year. Investment sales of office properties in the Houston area were up year-over-year with the annual sales transaction volume totaling $638 million, a 3.5% increase from February 2017, according to Real Capital Analytics.
Houston has begun to grow again. Metro Houston created 62,900 jobs in 2017, according to the Texas Workforce Commission, up from its original estimate of 46,000 jobs. In addition, Baker Hughes reports 984 drilling rigs in the U.S. as of mid-March, up 216 rigs, or 28.1%, from 768 this time last year. Lastly, WTI traded between $59.20 and $65.92 a barrel in February 2018 versus $52.19 to $54.48 year-over-year.
Director of Research
tel 713 275 9618