Despite Improving Economy, Office Remains Sluggish
In June 2018, year-over-year job gains in the Houston metro were 88,500 (annually), while job growth stood at 2.9%. However, the improving economy didn’t seem to be reflected in August 2018 office property numbers. According to NAI Partners, the vacancy rate grew to 22.1%, a 10-basis-point increase from the 22% reported for July.
So far in 2018, 374,204 square feet of office space delivered, with 30% of that space available for lease. Meanwhile, 2.7 million square feet is under construction, which includes the development launch of Hines’ 47-story, one-million-square-foot office tower at 800 Texas Ave.
Investment sales were down slightly, year to date, in July, with revenue totaling close to $1.8 million. Real Capital Analytics reported that the volume represented a -14.6% change from a year ago.
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