 | | Vestiges of the pandemic continue to grip the office market, and four years later, hopes are fading for a return to normal. In a state where higher-than-average vacancy rates are accepted as the cost of doing business — and build, build, build is the norm — a Texas-sized threat now looms over three of its largest metros. The Lone Star State’s economy was one of the first to reopen after the onset of the pandemic, and its leaders were quick to trumpet a big comeback a year later. Office occupancy rates rose swiftly, and the state continued its streak of piling up corporate relocations. But the self-proclaimed leader of the return-to-work movement is now staring down some of the emptiest office buildings in the country. Houston, Dallas and Austin are the first-, second- and third-most vacant office markets among the nation’s largest 50 metros, according to Moody’s Analytics. Only much smaller Tulsa, Oklahoma, Charleston, South Carolina, and Dayton, Ohio, are more vacant. Meanwhile, millions of square feet of expiring leases and dozens of new projects threaten to twist the knife, according to data provided exclusively to Bisnow. What comes next is sparking concern across the Texas Triangle. “Texas is in a chicken-and-the-egg scenario,” said Wesley Prato, a partner and commercial real estate leader at CohnReznick. “The people keep coming, but at the same time, you’re still building. Eventually you’ll have to stop building to catch up on the vacancy rates.” A historic supply-demand… Read Full Story |
