Quarterly Snapshot 4Q22 | Office | Houston Office Market Slows as Economy Cools Down
The office market has dealt with a fair number of shortcomings taking the wind out of its sails and causing real questions as to what changes the office market will experience in 2023. Office is still struggling to regain its momentum following the pandemic while facing an uncertain economy. In 4Q22 the square footage of space absorbed was 925,120 leaving the vacancy rate to 22.6% or 80 million square feet of space. Asking rents in Houston increased by 0.7% in 2022, which was under performing the U.S. average of 1.2% as of 4Q22. Rent gains are projected to increase somewhat during 2023; around 1.9%.