X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-The Houston office market is still looking for a big national recovery to help pull out of a decided slump. A report recently published by O’Connor & Associates gives a glimpse into the second quarter office market results. The numbers don’t indicate a turnaround, but researchers are quick to point out Houston’s office market is still faring better than most metros.

“The local economy has seemingly begun to resemble a punch-drunk boxer unable to avoid further hits,” writes Richard Zigler, O’Connor’s research director. “We should also be thankful, that Houston is not as bad off as our neighbors to the north, where 22% office vacancy suggests that the Cowboys are not the only ones in Dallas on a losing streak.”

The one bright spot, Zigler tells GlobeSt.com, is Houston’s western tier, a corridor that includes the Katy Freeway, Energy Corridor, the far west, Westchase and Sugar Land. Zigler says the west has experienced strong activity thus far this quarter with Westchase strongly rebounding and absorbing 140,000 sf. He attributes the current success to companies responding to the city’s heavy traffic by leasing space closer to the suburbs.

There is no good news on the horizon for the Galleria submarket. Thus far in the second quarter, the Galleria has negative absorption of 758,072 sf. Zigler believes again that traffic is a contributing factor since the submarket’s extremely heavy traffic deters tenants from signing on the dotted line.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.