BISNOW EXCLUSIVE: OFFICE USERS GOING BTS
October 10, 2012
By: Staff

Our office market is a mixed bag, according to Studley’s Q3 research released exclusively to Bisnow. ...

We sat down with Studley EVP/branch manager Mark O’Donnell for insight. We’re known for our jobs, but office-using employment has been erratic. Although we’ve regained 97.9% of office-using jobs lost in the recession, Houston’s 0.9% job growth YTD is below the US average. Office vacancy is slowly but steadily declining (some suburban submarkets saw sharp drops): Today, Houston’s overall availability is 16.2% and Class-A is 14.4%. That’s pushing corporate users to shift to ownership or BTS development. ...

Mark tells us he knows of three BTS prospects over 500k SF searching in West Houston right now.  ...

... Mark says Houston’s underlying fundamentals can be unnerving, but he doesn’t expect devastating vacancies or concessions. Rather, the trend will counterbalance some of the power landlords have enjoyed and make it easier to find available blocks and negotiate favorable terms for users. ...

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