Prepare for Ugly Office Reports
Hold your optimism, says NGKF executive managing director Brandi McDonald—the depressed energy market has dramatically changed office fundamentals. They haven’t showed up in quarterly reports yet, but she’s expecting the blast in the second half of this year. Read on below, and come see Brandi speak on the subject at Bisnow’s annual Houston State of the Market on June 30 starting at 7am at the Petroleum Club.
Brandi (far right, showing why you don't mess with Texas women—with colleagues Taucha Hogue, Shay Bolton and Vanessa Jeans) believes the office market will trough in 2016 and start improving again in Q4 ’16. That said, activity has remained surprisingly high. Last year, she had several expansions on the table from Texas to Canada through the oil patch. In October, they went on hold, and when they terminated in December, she thought there’d be six months to a year of wait and see. Instead, January brought consolidation activity, which has kept her just as busy. Because spending is being challenged on all levels, it’s going beyond traditional rooftop consolidation into operational consolidation; bringing unconventional functions and divisions together.
Houston has one thing going for it, Brandi says—excellent C-suite leadership that'll position these companies for the interim tough season and inevitable great times ahead. Brandi says this is a very important time for tenant reps like herself. Operational consolidation requires an extra level of knowledge and deeper consulting, but relationships and services are proven in this type of market. (If you help clients through tough times, they remember you in good ones.) Join us at Bisnow’s annual Houston State of the Market on June 30 starting at 7am at the Petroleum Club. (Sign up here.)