Of the 4.1 million sf, about 35% had been in class-A office space, 26.3% in class B and38.6% in class C.
Another indicator of Houston's strength in the office market is its amount of space. Since 1995, nearly 8.6 million sf has been added. In the past year, construction has slowed,but the market has played "catch up" with lower vacancy rates. Cushman & Wakefield predicts rental rates will rise as the market absorbs new space.
The report advises investors to expect a strong yield and initial cap rates that exceed 9%. In general, the report says, brokerage professionals see the Houston office market as tightening with strong ongoing demand.
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