Office Insiders

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Office Insiders · Episode notes · January 23, 2024

Houston Office Quarterly Report

James reviews a quarterly report on Houston office space, filmed in an office setting instead of the studio. He says activity is declining quarter over quarter because of hybrid work, rising rates and companies reducing their footprint. In his opinion the rate of decline is faster than in the past, and he says that spells opportunity for tenants who need space in markets like downtown.

He puts overall Houston vacancy above 25%, with softer submarkets such as southwest Houston near the Beltway running 30% and sometimes 40% for buildings. Negative net absorption is up again by over 200,000 square feet. His takeaway is that as long as more people move out than move in, landlords will look for strong credit tenants, which creates opportunity for tenants.

Key points

  • Quarter over quarter, activity in Houston office space is declining, driven by hybrid work, rising rates and companies reducing their footprint.
  • In James's opinion, the rate of decline is faster than in the past.
  • Overall Houston office vacancy is above 25%.
  • Softer submarkets such as southwest Houston near the Beltway show vacancy of 30%, sometimes 40%, for buildings.
  • Negative net absorption is up again by over 200,000 square feet, meaning more people are moving out than moving in.
  • Landlords will look for strong credit tenants to occupy their spaces, which James says is an opportunity for tenants.
"negative absorption means that more people moving out than moving in"
"landlords are going to be looking for strong credit tenants to be able to occupy these spaces"
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On locationDowntown Houston from the roofJames Robertson, Jr. with co-host Sruthi · Houston's Commercial Real Estate Show
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Office Insiders is the commercial real estate show Houston never had. Every episode: one building, one deal story, one piece of market intelligence that changes how you think about your own space. Built for CEOs, CFOs and business owners who want to understand the market, not just be told what to do in it. Ten minutes to watch, or listen on your commute.

James and SruthiOne building, one deal story and one piece of market intelligence per episode.
James Robertson, Jr.Host · Principal, Robertson Partners

$2.5 billion closed over 18 years in Houston. Client-first, every time.

SruthiDirector, Design & Client Experience
Co-host, Office Insiders

Sruthi walks every building with James and reads it the way a tenant will live in it.

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