Houston Property Management Firms Still Busy as Office Market Remains Strong
April 28, 15
In spite of months now of doom and gloom predictions about the Houston office market, the market is holding steady, according to a recent report from the Houston Business Journal. Companies who signed leases for space in the Energy Corridor and Katy Freeway before the energy downturn are now beginning to move into their offices.
Though the occupancy rate in that area has declined 4.4 percent year-over-year, it has absorbed almost 266,000 square feet in the first quarter. The Energy Corridor/ Katy Freeway submarket has 1.1 million square feet of new construction coming online this quarter at higher rental rates, the report noted, meaning an 11.9 percent increase in rental rates year-over-year, across all classes. The average office rental rate in this area was at $29.64 per square foot in the first quarter of the year. This submarket features more than 30 percent of Houston's new construction, with more than 4.5 million square feet being built.
According to another report from the Houston Business Journal, the Energy Corridor/ Katy Freeway area is home to several high-profile move-ins, including the U.S. headquarters for industrial gas manufacturer Air Liquide. Air Liquide's Katy Freeway location is expected to be complete by November of this year. Joining them in that area are Murphy Exploration & Production Co., Nexen, and Cobalt International Energy. In addition, a Hotel ZaZa has been announced and two new restaurants have recently been opened in the area.
Don't let the media's coverage of the energy slump keep you from taking advantage of the area's continued activity. If you're looking at Houston property management firms to manage your assets and ensure that they are performing as well as possible, regardless of what the economy is doing, we can help. Contact us for more information about our responsive and cost effective property management services today.