September 25, 2016
The oil industry downturn has hurt the Houston metro in many ways, one of which is an increase in available office space. And, in a recent report, J. Nathaniel Holland, chief research and data scientist with NAI Partners, also pointed out that crane-served real estate is also not exactly in high demand.
Holland said that Houston’s overall vacancy rate is 5.6%. The crane-served vacancy, however, is at 10.5%. Other figures he mentioned: demand for crane-served buildings is at its second-lowest level in 17 years; and close to 1 million square feet of negative net absorption.
Further hurting the case are continued deliveries – 508,000 square feet was delivered so far this year, with an additional 355,000 square feet under construction. Meanwhile, sublease availability of crane-served space is at 1.4 million square feet.
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