Houston Office Market Has Positive Net Absorption

HOUSTON (NAI Partners) – February 25, 2019 – After peaking at 22 percent in 2Q 2018, local office vacancy fell to 21.1 percent this month, according to ​NAI Partners.
So far, year-to-date 2019 net absorption is in positive territory at 762,230 sf.

The metro created 108,300 jobs, a 3.5 percent increase, in the 12 months ending December 2018. The five sectors adding the most jobs in 2018 were:

  • construction (19,400);
  • administrative and support services (16,800);
  • durable goods manufacturing (15,500);
  • professional, scientific, and technical services (11,200); and
  • health care (11,100).

The city’s west side (Energy Corridor) is continuing to see positive forward movement, underscored by the sale of Eldridge Place, a three-building, 824,632-sf office complex purchased by Granite Properties for $78.4 million from TIER REIT.