Houston rests right in the middle of Commercial Cafe's Top 30 priciest US rents, at an annual rent per square foot of $45.3, which would place it below Helsinki ($56.5) and Edinburgh ($51.5) in a global office rent comparison. Read more from NAI Partners on why the outlook remains positive in the long run.—Lisa Brown

BY THE NUMBERS

HOUSTON—According to NAI Partners, Houston's overall vacancy rate remained relatively unchanged at 20.7% in fourth quarter 2017, a decrease of 10 basis points quarter-over-quarter, compared to a 160-basis-point increase year-over-year. While net absorption for the quarter totaled a robust 750,016 square feet with direct space responsible for 260,977 square feet, and sublease space representing 480,475 square feet. However, it wasn't enough to push the year's total into positive territory, as 2017 ended with 1.5 million square feet of negative absorption being recorded. Overall occupancy in the Houston office market remains below 80%. The current rate of 79.3% is among the city's lowest historical levels. Both the Houston metroâ€™s overall rent and leasing activity are up from last quarter, and from a year ago. Everything considered, despite the uphill battle, the amount of sublease space as a percentage of the total amount of available space decreased to 15.4% at the end of December, compared to 16% at the end of November, while the total amount of available sublease space stands at 8.96 million square feet. Average asking rents grew by 0.9% year-over-year, while concessions such as free rent and tenant improvement allowances continued. The Houston economy continued to improve nearing the end of 2017. The business-cycle index is trending upwards and employment data exceeded pre-hurricane readings. Houstonâ€™s not seasonally adjusted unemployment rate was 4.3% in November, up from 4.1% in October. The November increase was driven in part by an increase in the labor force likely related to Hurricane Harvey. Fuel prices in the region jumped relative to West Texas Intermediate in September but have varied as storm-related misrepresentations lessened. Overall, while the outlook for the immediate future is circumspect, forecasts for the next few years remain optimistic.

NEWS AND NOTABLES

THE WOODLANDS, TX—National civil engineering and surveying firm Manhard Consulting has appointed Guillermo Machado to lead its commercial land development expansion for Manhard's Woodlands office. Machado will be tasked with growing and overseeing the commercial, industrial and multifamily practices in the Houston area. A civil engineering major from the University of Houston, Machado previously held management positions in planning and permitting, new engineer training and client relations.

DEAL TRACKER

ARLINGTON, TX—Transwestern announces that National Checking Company extended its lease for 59,001 square feet of industrial space at 2001 Randol Mill Rd. Transwestern principal John Brewer represented the tenant in the transaction. Chris Bly and Dan Lawson of Proterra represented the landlord.

AUSTIN, TX—Equitable Commercial Realty announced that TAMUS leased 11,262 rentable square feet of office space at Centennial Towers, located at 505 E. Huntland Dr. The landlord was represented by Matt Levin and Jason Steinberg with ECR. Thinkwell leased 1,438 rentable square feet of office space at Centennial Towers. The landlord was represented by Matt Levin, Jason Steinberg and Steve Pannes with ECR. HDR Engineering leased 5,143 rentable square feet at Lavaca Plaza, located at 504 Lavaca. The landlord was represented by Jason Steinberg and Matt Levin with ECR. The Law Office of Michael Baumer leased 1,347 rentable square feet of office space at Chase Northcross, located at 7600 Burnet Rd. The tenant was represented by David Dawkins with NAI Partners, and the landlord was represented by Rebecca Zigterman and Jason Steinberg with ECR. Level 3 Communications leased office space at 800 Brazos. The landlord was represented by Jason Steinberg and Matt Levin with ECR. Elliot leased 1,390 rentable square feet at 800 Brazos. The landlord was represented by Jason Steinberg and Matt Levin with ECR. Concierge Auctions leased 12,780 rentable square feet of creative office space at 800 Brazos. The landlord was represented by Jason Steinberg and Matt Levin with ECR and the tenant was represented by Will Douglas and Todd Gilfillan with CBRE. AccentCare leased 4,138 rentable square feet of office space at Summit Point, located at 2512 S I-35. The landlord was represented by Jason Steinberg and Steve Pannes with ECR. Tom Rhea with Peloton represented the tenant.

CORPUS CHRISTI, TX—Marcus & Millichap announced the sale of Bay Area Mini Storage, a 95,479-rentable square foot self-storage property. Jon Danklefs and Michael A. Mele, investment specialists in Marcus & Millichap's San Antonio and Tampa offices, had the exclusive listing to market the property on behalf of the seller. The buyer was secured by Mele and Danklefs.Bay Area Mini Storage is located at 2301 Rodd Field Rd.

DALLAS—Transwestern announces that Raymond Harris & Associates Architects has renewed its lease for 8,081 square feet of office space at 211 N. Record St. Transwestern principal Sanders Thompson represented the tenant in the transaction. Sarah Hinkley of Peloton Commercial represented the landlord.

DALLAS—Transwestern announces that Reed Wells Benson and Company renewed its lease for 7,763 square feet of office space at CBS Tower, 12001 N. Central Expy. Transwestern principals Duane Henley and Nathan Durham represented the landlord, Catalyst CCT LLC in the transaction. Clay Vaughn of CBRE represented the tenant.

GLENWOOD SPRINGS, CO—HREC Investment Advisors has arranged the sale of the 65-guestroom Holiday Inn Express and the 70-room Hampton Inn. The buyer was Terrapin Investments and Management Corp, who will also manage the hotels. Michael Cahill, CEO and HREC founder, and Jeffrey Duni, senior vice president in the HREC Investment Advisors' Denver office, exclusively represented Stonebridge Companies during the transaction.

IRVING, TX—Transwestern announces that Gregory A. Echt has leased 3,294 square feet of office space at PlazaOne61, 7301 N. State Highway 161. Transwesternâ€™s Nora Hogan, Tony Shallcross and Jordan Wade represented the tenant in the transaction. Ahnie Sheehy and Jay Bailey of JLL represented the landlord, American Fidelity Assurance Company.

KATY, TX—Holliday Fenoglio Fowler LP announces refinancing for Haven at Westgreen, a 225-unit class-A apartment community in this west Houston suburb. The HFF team worked exclusively on behalf of the borrower, CAF Capital Partners, to place the 10-year, 3.41%, floating-rate loan with Freddie Macâ€™s CME Program.Â The securitized loan will be serviced by HFF, a Freddie Mac multifamily approved seller/servicer for conventional loans. Haven at Westgreen is situated at 510 Westgreen Blvd. The HFF debt placement team representing the borrower included managing director Cortney Cole and director Dustin Selzer.

PLANO, TX—Transwestern announces that Grandstream Networks Inc. has renewed and expanded its lease for 5,503 square feet of office space at Plano Corporate Center West, 2301 W. Plano Pkwy. South. Transwestern principal David Besserer represented the tenant in the transaction. Trey Smith and Rodney Helm with Cushman & Wakefield represented the landlord, Griffin Partners.

SAN ANTONIO—Marcus & Millichap announced the sale of 12414 Nacogdoches Rd., a 11,200-square foot office property. Joshua D. Murphy, senior associate in Marcus & Millichap's San Antonio office, had the exclusive listing to market the property on behalf of the seller. The buyer was also secured by Murphy. The property has with seven suites totaling 8,800 rentable square feet.

TOMBALL, TX—JLL's Capital Markets secured financing on behalf of Stoneleigh CP Apartments LLC. Freddie Mac provided the loan, which will be used to refinance The Cape, a 228-unit multifamily community in this Houston suburb. Mark Brandenburg led the JLL team on the financing. The Cape is located at 10810 Spring Cypress Rd., near the prominent intersection of State Highway 249 and Spring Cypress Road.

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