With employees beginning to return to the office amid vaccinations, the Houston office market is in recovery mode from a weakened energy sector in addition to the pandemic. As the economy improves, the growing renewable energy industry, technology and life sciences industries are poised to improve market fundamentals.

“Users that are looking to upgrade their office space are making a flight to quality for new office buildings boasting top amenities and building systems, which bodes well for continued development in the office sector,” says Rand Stephens, principal, managing director – Houston Avison Young.

The Houston industrial market had a strong first quarter with 7 million square feet of leasing activity and 14 million square feet of construction, with the latter up 28 percent from fourth quarter 2020, according to Avison Young research.

Amazon and national retailers Lowe’s, Home Depot and Floor & Décor are among companies expanding a regional presence by building new facilities to satisfy consumer demand, capitalizing on the pandemic’s trend for home improvement, says Stephens.