Commericial Real Estate In Houston

Commercial Real Estate in Houston

Houston commercial real estate activity is measured by including outright purchase of a property; owner to buyer, property leasing and property subleasing. Sublease space figures are generally not included in statistics that evaluate commercial space vacancy rates, but nevertheless can substantially impact the commercial real estate marketplace.

Houston’s commercial real estate includes office space, warehouse, manufacturing, distribution, research and development space. Although some five million square feet of additional industrial space has been added to Houston’s commercial real estate sector this past year (2009,) and an additional one million square feet is under construction or scheduled for construction so far this year, vacancy rates continue to rise, and many new projects are on hold.

This year could be a perfect time for companies now in a position to purchase or lease commercial space to take advantage of the many concessions sellers and landlords are willing to offer, particularly before demand eventually begins to equal supply. Tenants looking to sublease space are another source of supply that expanding companies can look to for discount rental agreements.

With nearly 1,000 office buildings in Houston offering concessions for leasing or subleasing office space, many young companies with limited budgets now have the opportunity to establish an office presence in prime locations they might ordinarily have been priced out of. Now is a particularly opportune time to negotiate a lease, since projections appear to be favorable for a strong revitalization of the Houston commercial marketplace towards year end. And don’t overlook the fact that in many cases landlords are competing with their own tenants who could be subleasing their space at substantially lower rates

Compliments of VIP Realty