A Newmark 1Q24 Texas office market report indicates annual full-service asking rental rates decreased from an all-time high last quarter to $29.77/SF but reflecting a 0.7% increase year over year. Overall vacancy rates rose in the first quarter of 2024 to 25.1%, increasing by 30 basis points quarter over quarter and increasing by 80 basis points year over year. The under-construction pipeline remains muted, with 1.0 MSF in progress. Total leasing activity closed the quarter at 2.5 MSF, well below the long-term first-quarter average of 4.3 MSF. The average lease size was 3,866 SF, a decrease of 12.3% quarter over quarter and 1.8% year over year.
The market for industrial realized 2.1 MSF of positive absorption in the first quarter of 2024, a decrease of 47.5% quarter over quarter as demand begins to slow. Overall rental rates grew 4.9% year over year to $9.19/SF but declined 0.9% from the previous quarter. The construction pipeline is shifting toward pre-pandemic levels, with 15.6 MSF under construction and 6.0 MSF delivered in the first quarter of 2024. Supply outpaced demand for the fifth consecutive quarter, with new supply pushing vacancy up to 7.5%, an increase of 200 basis points year over year.
The post Houston Office Results Sluggish, Industrial Soaring appeared first on Connect CRE.
Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.
robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate
Read MoreConnect CRE