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Houston CBD Revitalization in Full Swing

HOUSTON-The city's CBD is riding high on a development wave. The energy industry, empty nesters and companies seeking in-town advantages are behind the boom. In the past five years, rents have jumped as much as $12 per sf.

By Jennifer Brenner Andrade | Updated on January 23, 2001

HOUSTON-Houston’s CBD is experiencing unprecedented growth, according to two leading Cushman & Wakefield of Texas Inc. brokers.

The occupancy rate for class A and B space in downtown Houston is 95%. Current rates for the 40-million sf CBD range from $22 to $26 per sf for older office space and $28 to $30 per sf for new construction, Lee Goodwin, senior director, tells GlobeSt.com. Five years ago, rental rates in the CBD had been a mere $15 to $18 per sf, he says.

About 1.9 million sf is under construction and more are sure to follow. Until last year, “the last time there had been a construction crane in downtown was when the now Heritage Texas Plaza was built in 1985,” says senior director Todd Mason. The CBD had gotten its jumpstart last year when Enron Corp. had broken ground on an office project.

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