Energy Sector Keeps Houston Office Leasing Brokers Busy
November 14, 14
You've seen the reports. Houston's economy is booming due largely to a thriving energy sector. Vacancy rates on office space are low, rents are high. Just how much does one story -- that of big energy -- have to do with the other story about big demand for office space? A lot, according to a recent article from the Houston Business Journal.
One study has revealed that prime office rental in energy dependent cities like Houston is up 25.2 percent, the article states. This compares to a much more modest 4.5 percent in cities whose economy is not dependent on energy -- a difference of more than five times.
There are around 3,700 oil and gas businesses in Houston, the article stated, and Houston's companies account for about 40 percent of the energy industry employment in the United States. Around 105,000 new jobs since 2010 have been created in Houston by the energy sector -- about a quarter of all new jobs created in the area during that time.
In the first half of 2014, Houston had 462 office leases, the article reported. 28 percent of those leases went to energy companies. Houston has absorbed over a million square feet of office space every quarter since 2011, and office space rents are reaching record highs. However, with new construction nearing completion, it is expected that more space will become available and rents will not remain at such high levels.
In other words: now is a great time to lease the office space and the Houston office leasing brokers at LandPark Commercial would love to help you find a great tenant. For more information, contact us.