Tenants Continue to Capitalize on Soft Market
Happy New Year!
As we begin 2005, let's examine the office market statistics for 2004. These snapshots reinforce our maxim that it is still a favorable time to be a tenant in Houston.
I am pleased to be on your side of the negotiating table and look forward to working with you in 2005.
Sincerely,
Candace
Noteworthy Office Leases--2004
Source: CoStar Property
2004 Class A Statistics
Source: CoStar Property
2004 CBD Office Statistics - Class "A" and "B"
Source: CoStar Property
occupancy
Existing Buildings: 29
# Spaces: 499
Existing Rental Building Area: 28,915,016 sf
Vacant: <6,790,472>
23%
Occupied: 22,124,544 77%
Leased: 23,925,976 83%
availability
Vacant: 5,377,136 19%
Total: 6,506,735 23%
Direct: 5,783,508 20%
Sublet: 775,147 3%
leasing activity
Average Time: 17.5 months
Leasing YTD: 47,374 0%
Net Absorp YTD: (278,974) (1%)
direct gross rent
Office Range: $16.00-$33.38/yr
Office Avg: $21.32/yr
2004 Galleria Office Statistics - Class "A" and "B"
Source: CoStar Property
occupancy
Existing Buildings: 62
# Spaces: 626
Existing RBA: 17,405,660 sf
Vacant: <3,693,189>
21%
Occupied: 13,712,471 79%
Leased: 14,062,958 81%
availability
Vacant: 3,560,573 20%
Total: 3,886,292 22%
Direct: 3,588,360 21%
Sublet: 309,830 2%
leasing activity
Average Time: 23 months
Leasing YTD: 68,264 0%
Net Absorption YTD: 42,935 0%
direct gross rent
Office Range: $13.50-$22.00/yr
Office Average: $18.84/yr
2004 Greenway Plaza Office Statistics - Class "A" and "B"
Source: CoStar Property
occupancy
Existing Buildings: 58
# Spaces: 299
Existing RBA: 10,413,240 sf
Vacant: <2,318,934>
22%
Occupied: 8,094,306 78%
Leased: 9,038,875 87%
availability
Vacant: 2,236,421 21%
Total: 2,255,506 22%
Direct: 1,382,100 13%
Sublet: 873,406 8%
leasing activity
Average Time: 16.4 months
Leasing YTD: 52,236 1%
Net Absorption YTD: (571,693) (5%)
direct gross rent
Office Range: $15.00-$34.33/yr
Office Average: $18.40/yr
"For a true writer each book should be a new beginning where he tries again for something that is beyond attainment. He should always try for something that has never been done or that others have tried and failed. Then sometimes, with great luck, he will succeed."
Ernest Hemingway, in his Nobel Prize acceptance speech
