HOUSTON OFFICE

Monthly Market Snapshot

NOVEMBER 2019

Market Highlights Market Activity

Some market indicators positive, though Year-to-Date
November
future uncertainty persists. Halfway
through the fourth quarter of 2019, overall 2019 2018

vacancy is at 21.0% and availability is at Vacancy 21.0% 21.1%

25.9%, both down 10 basis points from this
Availability 25.9% 26.0%
time last year. Net absorption was back in
positive territory at 898,000 sq. ft. Leasing Net Absorption (SF) 898,465 377,579
activity is outpacing this time last year by Leasing Activity (SF) 13,863,191 12,623,357
9.8%, totaling 13.9 million sq. ft. year-to-
date. Developments under construction Deliveries (SF) 1,593,853 866,361

and delivered projects have also outpaced Under Construction (SF) 3,072,659 2,667,002
November 2018 year-to-date numbers. The
Gross Avg Asking Rent (PSF) $29.68 $29.10
Houston average asking full-service rent has
increased to $29.68 per sq. ft., while the
Central Business District is averaging $41.35
per sq. ft. Supply & Demand
Supply Demand Vacancy
Marathon Oil's new tower in CityCentre.
10.0 25%
990 Town & Country Blvd., a 15-story,
Millions (SF)

440,000-sq.-ft. Class A office tower in 7.5 20%

CityCentre will be the new headquarters for

5.0 15%
Marathon Oil. Construction is set to start
soon on the project as the energy company 2.5 10%
relocates a little less than 6 miles west of its
current location at 5555 San Felipe St. in 0.0 5%

the Galleria/West Loop area. Marathon has

-2.5 0%
been in their current location for more than 2014 2015 2016 2017 2018 YTD 2019

three decades and plans to relocate when its

current lease expires in late 2021.

Economic indicators on balance. The Delivered

Houston metro created 80,400 jobs, a 2.6% Total Delivered: 1,593,853 SF

increase, in the 12 months ending October Available Leased

2019, according to the Texas Workforce CBD

The Woodlands
Commission. Professional and business FM 1960/Hwy 249
services have shown healthy year-over- Energy Corridor
Katy Freeway
year gains at 22,300 jobs, followed by
Sugar Land/E Fort Bend
manufacturing at 9,100 positions, and health Midtown

care at 8,400 jobs. Houston's unemployment Northwest

South
rate was 3.5% in October, down from 3.6% 0 100 200 300 400 500 600 700 800
in September and 3.9% in October of last Thousands (SF)

year. The Texas rate in October was 3.3%,

and the U.S. rate was 3.3%. The rates are not
seasonally adjusted.
Leta Wauson
Director of Research
leta.wauson@naipartners.com HOUSTON | AUSTIN | SAN ANTONIO
tel 713 275 9618