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Q2 Sees Slight Positive Office Absorption

HOUSTON-For the first time in a long time, the CBD shows significant absorption in its office inventory as did the Energy Corridor. Other suburban submarkets backslide, but still the second quarter tally overall shows the market's tuned up for a slow turn.

By Bonnie Grota | Updated on July 19, 2004

HOUSTON-The city’s Downtown office market and the Energy Corridor posted to the positive in the second quarter, sending a signal that the worst is over, says a leading market watcher.

The CBD absorbed 213,000 sf. “There hasn’t been a lot of positive absorption in Downtown in a long time,” Sanford Criner, executive vice president at CBRE/Trione & Gordon, tells GlobeSt.com. The Energy Corridor on the west side racked up 256,000 sf of positive absorption to end the quarter with a class A vacancy of just 7.1%. The other suburban markets, though, backslid a combined 251,000 sf in Q2, ringing up a 14.1% vacancy.

Nonetheless, Criner says the market is slowing turning. “I believe that we’ve seen the worst of it,” he says of the 180-million-sf office inventory, “and we should see a slow, but deliberate recovery here in the Houston office market.”

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