Houston's Office Market Feels a Slight Aftershock
Look at these numbers! The math is simple. Higher vacancies plus more sublease space equals lower
rental rates.
The Houston office market ended the first quarter 2005 with a vacancy rate of 16.3%.
• Vacancy up---The vacancy rate was up over the previous quarter, with net absorption totaling negative (194,723) square feet in the first quarter.
• More sublease space---Vacant sublease space increased in the quarter, ending the quarter at 3,681,531 square feet.
• Lower rates---Rental rates ended the first quarter at $17.32, a slight decrease from the $17.38 average in the previous quarter.
Get Remote Access to Your Home Computer
Anyone who uses a computer in two or more locations knows the feeling--you turn on your laptop and
realize the file you want is on your desktop computer. Many people have remote access to their work files all set up by the IT department, but if you are the IT department for your home, there are an increasing number of ways to let you
access the files of any of your computers remotely.
Richard Kutner, Technology Consultant, Houston, Texas
The idea of accessing a PC remotely isn't new. Programs like PCAnywhere have been around for over a decade. They need to be installed on both computers, so there is no way to use them from a borrowed computer. Windows XP Professional
also offers remote file access if you have it on both machines.
Now there are remote access programs that work over the Internet. Instead of having to buy and install software on multiple machines, you simply download a small program application from the Web onto the computer you want to access. This
"agent" will then let you control the computer through a Web site from virtually any other PC. With any of these programs, your main computer needs to be turned on and connected to the Internet, of course.
With software you buy and install, there is just a one-time charge, while the Web-based remote access systems charge a monthly fee, so you need to balance that consideration.
Either way, you can use remote access to interact with your home PC as if you were sitting in front of it. You can check e-mail, run programs, transfer files, and even have a file print out at your remote location. Password protection
and encryption keeps your data safe. Big names in remote access include GoToMyPC, MyWebExPC, InTouch, and LogMeIn. Free demos are available on their Web sites as well as free trials so you can find the system that works for you.
With technologies such as Dynamic DNS and Microsoft's Remote Desktop Protocol, third-party software is no longer necessary for many remote access situations. Simply subscribing to a free Dynamic DNS service will allow a computer without a
static IP address (a fixed address on the Internet) to be located and then RDP can be used to control the computer. Remember, though, that any remote access solution must be properly secured to maintain the integrity, availability, and
security of the underlying network. Richard Kutner is a Houston-based technology consultant who has implemented many such solutions. He can be reached at (713) 705-9989 or by e-mail to richard@rakutner.com.
CBD Office Statistics - Class A/B
Source: CoStar Property
occupancy
Existing Buildings: 65
# Spaces: 748
Existing Rental Building Area: 39,428,354 sf
Vacant: <8,311,875>
sf, 21%
Occupied: 31,116,479 sf, 79%
Leased: 33,122,028 sf, 84%
availability
Vacant: 6,767,726 sf, 17%
Total: 8,278,557 sf, 21%
Direct Available: 7,427,331sf, 19%
Sublet Available: 903,146 sf, 2%
leasing activity
Average Time: 20 months
Leasing YTD: 475,802 sf, 1%
Net Absorption YTD: (306,557) sf, (1%)
direct gross rent
Office Range: $10.50-$33.38/yr
Office Average: $20.09/yr
Galleria Office Statistics - Class A/B
Source: CoStar Property
occupancy
Existing Buildings: 62
# Spaces: 630
Existing Rentable Building Area: 17,405,660 sf
Vacant: <3,784,578>
sf, 22%
Occupied: 13,621,082 sf, 78%
Leased: 14,224,182 sf, 82%
availability
Vacant Available: 3,510,456 sf, 20%
Total Available: 3,849,293 sf, 22%
Direct Available: 3,435,211 sf, 20%
Sublet Available: 414,082 sf, 2%
leasing activity
Average Time: 22.9 months
Leasing YTD: 270,439 sf, 2%
Net Absorption YTD: (48,454) sf, (0%)
direct gross rent
Office Range: $13.37-$23.00/yr
Office Average: $18.77/yr
Greenway Plaza Office Statistics - Class A/B
Source: CoStar Property
occupancy
Existing Buildings: 57
# Spaces: 264
Existing Rentable Building Area: 10,251,382 sf
Vacant: <2,070,949>
sf, 20%
Occupied: 8,180,433 sf, 80%
Leased: 9,121,366 sf, 89%
availability
Vacant Available: 1,986,171 sf, 19%
Total Available: 2,019,779 sf, 20%
Direct Available: 1,144,032 sf, 11%
Sublet Available: 875,747 sf, 9%
leasing activity
Average Time: 17.8 months
Leasing YTD: 179,636 sf, 2%
Net Absorption YTD: (485,564) sf, (5%)
direct gross rent
Office Range: $15.00-$34.33/yr
Office Average: $18.34/yr
Baggett Speaks at Real Estate Law Conference
Candace Baggett spoke on Economic Analysis of an Office Lease from the tenant's perspective on June 9, 2005 at South Texas College of Law's Real Estate Law Conference.
Send Email to Candace Baggett
This newsletter was designed to comply with the rules and regulations of the Texas Real Estate Commission. The Calibre Group, Inc. and Candace S. Baggett are licensed as real estate brokers by The Texas Real Estate Commission.
"Be a yardstick of quality. Some people aren't used to an environment where excellence is expected."
Steve Jobs
