Class-A Office Occupancy Below 80%
Want to get a jump-start on upcoming deals? Meet the major Houston players at one of our upcoming events!
Surprising no one, Colvill’s Office Properties’ Q4 report on the state of the office market showed softness. Class-A occupancy ended the year at 79.5%, down from 85.9% in Q4 '14.
Leasing activity was flat in 2015, though buildings that were under construction and had already signed new leases delivered, giving the appearance of absorption.
The good news: Because many tenants made leasing decisions in early 2014 when times were good, there will be limited rollover lease expirations in 2015 and 2016. Energy tenants are signing short-term extensions while they wait to see what 2016 and beyond bring. Colvill predicts this might result in a mini-boom in 2017 as pent-up demand spikes.