Houston’s Industrial Leasing is Booming but Office Market Remains Sluggish, Reports Say

Avison Young today released both its First Quarter 2022 Office and Industrial Market Reports for Houston. Despite Houston’s economy reporting an upswing with unemployment dropping to 5.3%, work-from-home policies have the potential to impact the amount of space leased and issues within the energy industry contribute to decreased leasing activity, especially in the office sector. However, unlike office leasing velocity, industrial leasing activity is booming as net absorption remains elevated when compared to record levels from the previous year.

“The Houston industrial market’s momentum of 2021 has carried over into first quarter 2022,” said Rand Stephens, principal and managing director of the firm’s Houston office. “Developers continue to announce and break ground on new projects.”

With respect to Houston’s office sector, Anthony Squillante, also of the Houston office and a specialist in office tenant representation, said, “Concessions continue to remain strong while quoted rates are declining. Flight-to-quality is also a key trend, with amenity-rich towers enjoying success.”