HOUSTON—The rate for office space in Houston’s Central Business District is the highest of any other market at $42.22 per square foot, and yet demand continues to drive up prices there. But two other submarkets—Westchase and Greenway—have undergone, more dramatic rent increases over the last year.
This according to an analysis by Jones Lang LaSalle, as reported in the Houston Business Journal.
The Westchase office market had the highest percent increase over all other submarkets at 18.5% year over year. The average rental rate for Westchase is currently $38.11 per square foot, according to JLL’s second quarter report.
Greenway rents jumped 18.3%, which was the second highest increase percentage. The average rental rate there is $36.24 per square foot. The Woodlands had the third highest increase at 11.3%. In comparison, the Central Business District increased by just 6.4% in the last year.
Other markets to watch, according to JLL, include the Clay Road/West Belt 8 area. Energy companies led the way in terms of the number of completed real estate transactions for the second quarter of the year, according to JLL.
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