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Small office rent calculations in the Houston have changed since the first quarter of this year and will affect your ability to negotiate an affordable office rental price, especially in the metro area. However, the goal when looking for office space in Houston isn’t just finding an affordable office to work in. Rather, it should be finding and renting a small office that best fits your business’s daily functions.
Finding the right houston office space for lease can be a real challenge. Over 195 million square feet of office space is available throughout metro Houston, due to its vibrant, growing economy and strong job demand. Here are a few observations made about Houston’s second quarter office activity in 2015:
- Midstream companies typically occupy less office space than upstream companies.
- Between the first and second quarter, the office rental activity in Houston fell to almost 36 percent in 2015. Compared to the very strong movement of rental space recorded (5.5 million SF) in 2014’s second quarter, office rental activity decreased 67.5 percent.
- Approximately 6.0 percent of 2.1 million SF in new office space inventory is still vacant in the Houston market.
- The majority of office rental space is located in suburban submarkets and is primed for delivery over the next 12 months.
- Houston’s office market posted negative net absorption for the first time in 5 years, mainly due to tenants migrating to new buildings and companies placing excess space on the sublease market. Net absorption is the ratio difference of tenant arrivals versus tenant departures over a certain time frame.
- Sublease space went from 4.5 million SF to 6.0 million SF which reflects a 33 percent increase between 2015’s first and second quarter.
- The pattern of a low vacancy rate in Houston should keep its office market healthy overall. Additionally, a large portion of projects under construction are being postponed and new inventory is mostly pre-leased.
Based on Houston’s growing workforce, market analysts predict that the office spaces now available for rent in Houston will gradually decrease over the next 12 months. If you need further assistance finding a suitable office space for rent, a commercial real estate agent can help you determine which type of office unit will work best for you.