Houston Fights Against Large Areas of Unused Space

Houston is facing a challenge with large blocks of second generation space that need to be backfilled, according to Partners Edge. There are 183 big blocks of space (50,000 square feet or more) not including properties currently under construction. Class A properties account for the majority of these spaces; however, many are too large and/or functionally obsolete when compared to new construction. Many were originally designed as single-tenant buildings but now tenants occupying 200,000 sq. ft or more prefer newer and more efficient structures when their leases expire. An example is Hewlett Packard Enterprise (HPE), which moved into 440,000 sq ft build-to-suit space in early 2022 after vacating an older 1980s office campus in the FM 1960 submarket . Houston’s overall office market fundamentals have been impacted by this issue due to difficulty filling such large spaces quickly .