Register Real Estate Advisors

HOUSTON (Houston Business Journal) – Houston’s industrial market had a third-quarter overall vacancy rate of 7.75 percent and posted a year-to-date negative absorption of 994,000 sf, according to Grubb & Ellis.
The “northwest far” submarket lost the most in the third quarter, with a total of 618,000 sf vacated by Academy Sports & Outdoors at 8760 Clay Rd. and Bison Building Materials at 7611 Railhead.
With 1.5 million sf of industrial buildings under construction, 1.1 million of which are warehouse-distribution properties, Grubb & Ellis expects the vacancy rate to continue rising.
Asking rates for industrial space are currently $5.13 per sf, down 20 cents from the second quarter.
Houston’s commercial real estate market had 381,000 sf of negative absorption in third quarter 2009.

HOUSTON (CB Richard Ellis) – CB Richard Ellis today released its third-quarter results for the Houston office market.

According to the report, the market suffered 610,000 sf of negative absorption, bringing the year-to-date total to a negative 1.7 million sf.

The Central Business District and surrounding suburban markets had 98,000 and 512,000 sf of negative absorption, respectively, while the overall Class-A segment absorbed 305,000 sf. The Class B market suffered the majority of negative absorption with 800,000 sf.

The report also stated that sublease space increased to 4.4 million sf from 3.8 million sf and is approaching the highest levels since the 1980s.