Class-A Office Absorbs 1M SF in Q3

The oil markets have slowed office leasing to its lowest level since '09, but Houston still posted 1M SF of positive net absorption in Q3. PMRG director of research Ariel Guerrero (pictured with his wife on a recent trip to the Caribbean) says that's all from Class-A, and mostly from ConocoPhillips, which moved into 547k SF when Energy Center Three delivered. Despite the happy stat, Houston's Class-A office sector's occupancy is still down 300 bps for the year (to 87.1%) because of all the new construction coming on line. We're still above our 20-year average (86.8%), but Ariel predicts that'll change by year-end.

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