Coy Davidson, vice president of the office services group with the Houston office of Colliers International, tells GlobeSt.com that NASA contractors are continuing to bid on new space as well as execute renewals in the submarket. According to his calculations, 35% to 40% of the submarket is tied to the space program.
The biggest negative factor to hit the market was the return of 115,000 sf by Lockheed Martin at 3700 Bay Area Blvd. Still, class A vacancy is only 2%. The average rent for class A office space is $20.71 per sf while class B is bringing in $15.98 per sf, on the average.
Davidson says no new construction is planned although rumors still abound about a 125,000-sf office project in South Shore Harbor for American National Insurance. At last count, 18 office properties were up for sale, but it's not an indicator of a downward trend, he says. Going forward, the prediction is the submarket's office product will hold its steady course for the balance of the year.
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