Why Uptown Can Withstand a Down Market Better Than Ever
While Houston is facing near-term challenges, Transwestern EVP Eric Anderson believes the Galleria is in a better position to manage through this environment than in previous down markets. We're excited to discuss the Galleria/Uptown submarket at our Future of Uptown/Galleria event tomorrow, starting at 7:30am at the Royal Sonesta.
Eric says small to midsized deals remain active, but there are a few new larger blocks of space that do present a challenge. The ongoing success of retail, the addition of numerous high-end multifamily developments and a growing number of hotels combined with the planned bus improvements (creating the assumption that the area will finally offer a viable mass transit solution) should help the submarket recover more quickly than in past cycles.
Uptown/Galleria is faring better than most of Houston's main business districts. According to Transwestern's newly released Trendlines report, it's got 473k SF of sublease space, well below Greenspoint, Westchase, the CBD or the Energy Corridor. Overall, there's 3.1M SF immediately available in the 33M SF submarket. That puts it at a 10.2% overall vacancy (including sublease space). Compare that to Downtown (13.3% vacancy), Greenspoint (28.1%), Westchase (11.4%) or the Energy Corridor (13.6%). Although Uptown has one of the largest office buildings under construction now, that won't be a problem—the 600k SF BHP Billiton Tower will be fully occupied by its namesake when it opens in Q1.