According to Avison Young’s Second Quarter 2024 Office Market Report for Houston, the office market is gradually improving with the top tier leading in the recovery. The trophy office segment has shown strong performance, recording 778,000 square feet of positive absorption in the first half of 2024. This indicates a high demand for top-quality space as tenants prioritize modern amenities and functionality.
Leasing activity in Q2 of 2024 reached a total of 2.7 million square feet, which is still below the pre-Covid average by 36%. The slower pace can be attributed to challenges faced by building owners in securing debt and liquidity, making it more difficult for larger deals to occur with their lenders. Additionally, hybrid and remote work arrangements have also played a role.
The report highlights that energy-related companies remain dominant players in leasing activity at present accounting for over one-third (30.6%) of all leases signed so far this year.
This article was originally published on Connect CRE website.
