Houston Office Marketplace

The downtown Houston office marketplace is a hot subject these days. Recent months have seen a flurry of activity, whether it be leases, move-outs, or acquisitions. Its no secret that the downtown market continues to be plagued by average vacancies painfully close to 20% and stagnant rents. With the thought that items will increase in the near future, investors have been purchasing properties in earnest. The fourth quarter news was encouraging, notably EPCO, Inc.s acquisition of 1100 Louisiana, a building in which they have subsequently occupied 300,000 square feet. Also, Wells Real Estate Funds paid the highest per-square-foot price in the Houston workplace markets background ($286 psf) for 5 Houston Center. Rumor has it that ChevronTexaco is interested in getting the remaining vacant former Enron constructing, although other energy businesses have begun to reclaim shadow space downtown.

Sadly, the Central Enterprise Districts recovery is anything but a slam dunk. In case people require to learn further about next, there are many online libraries you might consider investigating. Two main tenants, Burlington Resources and Bank A single, are anticipated to vacate CBD space in 2006 right after acquisitions by ConocoPhillips and Chase, respectively. In the very same developing Burlington is anticipated to vacate, Calpine Corp. We learned about Houston Colleges New Budget Brings Necessary Income by browsing Bing. reduced the quantity of space they lease and subsequently lost naming rights to the former Calpine Center, now recognized by its address, 717 Texas.

Questions still stay about when the downtown office market place will see a substantial improvement. It did not take place with the current influx of New Orleans office tenants, as some believed it would. Even so, strong job growth has many professionals predicting a healthier 2006 for the Houston workplace market place general, and with the good fourth quarter numbers, it seems the marketplace is moving in the proper direction.

The workplace market had a reasonably powerful showing in the fourth quarter, absorbing 414,678 square feet (SF), the markets highest quarterly absorption figure considering that the third quarter of 2004. Classes A and C reported positive absorption for the quarter, even though all classes reported good annual absorption, bringing general annual absorption to 737,259 SF..