How's Office Demand In The Texas Triangle?
Nobody's messing with Texas office space, and a new report from CBRE proves it. With nearly 500M SF of office space in the Texas Triangle, the Lone Star State would rank as the 10th-largest economy in the world if it were a sovereign country. Yet these three metros—DFW, Houston and Austin—remain as different as night and day.
Dallas Has Job Growth
After 5.2M SF of absorption in Dallas in 2015, this metro shows no signs of slowing down. DFW has 7M SF of office in the pipeline largely thanks to corporate relocations like Toyota. Even considering record absorption, DFW has a consistently higher office availability rate than Austin and Houston, now hovering around 24%, compared to 15% in Austin and 20% in Houston.
Energy Is Still King In Houston
As Houston delivers the final buildings in this cycle's office pipeline, 30M SF of new inventory will have come online since 2010. Though subleasing has soared, energy companies still account for 40% of the tenants in Houston with financial, legal and business services comprising a respectable 11% each.
Austin Claims The Most Class-A Space And Tech Companies
In 2015, tech companies accounted for 80% of the 119 relocations or expansions in Austin. And all those techies want a nice office. Class-A offices make up about 54% of the product in Houston and DFW, but 60% in Austin. Average rents topped $48/SF in Austin in Q2.
