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Houston Shows Signs of Recovery as Workers Gradually Return to the Office
At a 23.2 percent vacancy rate at the end of fourth quarter, the Houston office market remains sluggish. However, with unemployment figures currently at 5.1 percent, which is down from the March 2020 high of 14 percent, there are signs of recovery as people gradually return to the office.
“We are advising our occupier clients to make a flight to quality to take advantage of lower rental rates,” says Rand Stephens, Avison Young principal, managing director – Houston. “It is also a buyers’ market for investment opportunities with office pricing down 30 percent from March 2020. The good news – asset pricing has trended incrementally upward over the past few months.”
Finally, Houston ranks fourth in recovery when comparing representative office employers among all U.S. gateway cities, according to Avison Young’s Vitality Index. All of this bodes well for Houston as the region continues to experience population growth along with a very healthy job market, says Stephens.
- ◦Lease
