HOUSTON – Local office vacancy rose half a percentage point over the quarter in 2Q2020, up 70 basis points compared with this time last year, according to NAI Partners.
Overall net absorption totaled negative 852,000 sf. Of the 4.1 million sf currently under construction, 52.8 percent of that space has been spoken for.
So far this year, nine properties totaling 750,000 sf were delivered, of which 65.9 percent is leased.
The overall local average asking full-service rent is at $29.39 per sf, down from $29.55 a year ago.
According to the Greater Houston Partnership, Houston’s economy continues to struggle and likely will for the foreseeable future as it grapples with the effects of the COVID-19 pandemic and the collapse of the oil market.
Altogether, the region lost 350,200 jobs in March and April and gained back 73,800 jobs in May.
Global oil demand remains weak and may have to look as far as 2022 to see demand for crude reach pre-pandemic levels.
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Source: NAI Partners