Houston's Strong Job Growth Boosts Office Leasing Activity

Houston's strong job growth due the to rapid expansion in the energy sector has boosted office leasing during the first half of 2012.  Houston's office market posted 1.4 million SF of positive absorption in the second quarter, pushing the year-to-date total to 2.4 million SF. Increased demand for office space has reduced available inventory, leaving companies that are looking to expand or move into the market with very few options. Office developers have responded by announcing several new spec projects since last quarter.

In addition to the Exxon/Mobile North Houston campus, Anadarko's second corporate tower in The Woodlands, and Phillips 66 announcement regarding their plans to build their headquarters in West Houston, Apache Corp. recently announced the purchase of 6.4 acres of Wulfe & Co.'s BLVD Place mixed-use development in the Galleria area.

Multi-tenant office developments recently announced include Energy Crossing II, a 245,000 SF Lincoln Property Co. development in West Houston which Atwood Oceanics preleased 82,000 SF.  Other companies that have announced plans for new office developments include Stena Realty, Trammell Crow, Core Real Estate, Mac Haik, Skanska, and Stream Realty/Wile Interests, to name a few.  A complete list of properties currently under construction can be found on page 7 of this report.

Please click here to access the full Q2 Houston Office Market Research & Forecast Report.