January 7, 2021
Fundamentals for Houston office further weakened in the fourth quarter, ending 2020 at 22% direct vacancy, the highest since the 1980s, Madison Marquette says in its latest report. With negative absorption of nearly 3.9 million square feet since Q4 2019 and 1.4 million square feet of new product, vacancies rose 240 basis points year over year.
“Houston’s office market was struggling amid a glut of available space even before the outbreak of the deadly COVID-19 coronavirus,” said Madison Marquette’s Wade Bowlin.
“Even though many companies have been able to quickly adapt by taking their workforce remotely and encounter little disruption to their everyday operations, this doesn’t mean this physical workplace shift won’t eventually be felt in the office market in the long-term as companies either reduce or expand their footprints.”
That being said, a reversal of densification within workplaces may create a need for more office space, says Madison Marquette.
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