Figures
Houston Office Figures - Q3 2024
October 2, 2024 5 Minute Read
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- Leasing activity slowed significantly in the third quarter, with transaction volume among 10k+ sq. ft. deals the lowest recorded since 2016. This decline reflects broader economic uncertainties and cautious business sentiment moving into election season
- Net absorption fell deeper into negative territory with Fluor’s long-awaited relocation from Sugar Land to the Energy Corridor – which worked out to be a 70% downsize of their footprint
- The first building at The RO, a build-to-suit HQ for Vitol, broke ground as part of a larger mixed-use development, adding 143,000 sq. ft. of Class AA office space to the development pipeline
- Despite an edging up of vacancy over Q2, total availability decreased 80 bps quarter-over-quarter, on account of buildings in limbo and facing potential conversion - namely 5555 San Felipe, which is no longer actively marketing 800k sq. ft. of space
- The FED’s decision to cut interest rates by 50 bps brought a touch of optimism in September. The rate cut – and further forecasted cuts - are anticipated to stimulate the CRE sector by making borrowing more affordable, thereby encouraging investment and refinancing activity