Impressive Office Pre-leasing
Time to break ground on more office projects? Although we have 9.4M SF under construction (including ExxonMobils 3M SF), Avison Young reports that Houstons office development is 81% preleased. Research director Jeannie Roberts says that's indicative of development finally catching up with the energy industry's explosive growth. Another sign: Our Class-A vacancy was 8% at the end of Q1. Avison Young broke down the construction and preleasing for us by submarket:
In the Energy Corridor,only Mason Creek Office Center has no pre-leasing set, and six of eleven properties under way are completely spoken for. (Unless you can convince one to run away and elope with you.) Avison Young principal Charlie Neuhaus tells us it's rough for tenants to find quality space to grow in the Energy Corridor, even with the new construction.