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United States | Houston, TX

Report | Houston Office Insight - Q1 2016


As more large blocks of sublease space hit the market throughout the year and downsizing continues, Houston’s overall office market could see a rocky 2016. ​

Investors appear to have shifted strategy away from Class A and Trophy assets towards smaller Class B properties. These type of buildings generally have more secure tenant bases. Only three building sales happened in the entirety of Q1—all of Class B assets.

With an additional 2.7 million square feet of new deliveries still to be leased, we expect market vacancy rates near 20 percent by year’s end. Slightly higher energy prices could entice more companies to take advantage of this tenant-favorable market.

Learn more about what’s happening right now in Houston—and what we can expect over the next couple months—by downloading our Q1 2016 US Office Insight.

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