CityCentre 5, a property of Lionstone Investments and Midway, has received a Fitwel certification for healthy buildings. Newer buildings with amenities nearby have continued to attract office tenants, according to Partners Real Estate.Houston's excess empty office space problem won't be resolved any time soon as a recession looms.
Houston area office vacancy ended the third quarter at 25 percent, up from 24.3 percent in the third quarter of 2021, according to Partners. While several energy companies such as Enbridge and EOG Resources have signed big office leases and renewals this year, the market is mixed as companies evaluate space needs and seek ways entice workers back to the office in the work from home environment, brokers said.
Buildings that are positioned to gain tenants offer move-in ready offices that have been popular among small businesses, brokers said. Lenders who are concerned about being too heavily weighted on construction loans have backed out of providing debt and equity for projects, Land said. Also, some land purchases for industrial projects have fallen through.
"A lot of companies that ship products, especially from Asia, took a small footprint in our market and saw how effective it was," Land said."A lot of those companies are taking larger footprint, using the Port of Houston as the primary port."
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