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While new supply is outpacing leasing activity in some markets, other regions experienced a considerable rebound in net absorption after a slow start to the year.
Strong tenant demand has also caused rents to rise, with the overall average rent higher by 7.8% year-over-year, including 10 submarkets that record rent increases of more than 10% during that period.
The brokerage firm also reports that another lease deal with a co-working firm involving multiple floors of a City Center office building is currently pending.
San Antonio's affordability makes it a popular destination for new residents along with a hot secondary investment market while Houston's economy continues to strengthen as employers accelerate hiring.
Once thought of as co-working offices, now more often referred to as flexible space, for H1 2019 this sector has reached 8.5% of leasing activity nationwide, according to CBRE's latest research.