Houston 2018 Effective Rent Index

CONCESSIONS HIT RECORD, EFFECTIVE RENT FALLS

Takeaway

Leasing volume in the region rebounded late in 2017 as energy prices started to rise and tenants took advantage of lower rent and favorable terms. Ample sublet supply and elevated availability forced landlords to make further reductions to rent. Heading into 2018, energy firms and other sectors appear to be slowly increasing their investment and hiring. Nevertheless, with availability rates exceeding 25% in nearly all areas, landlords will still lack the leverage to boost rent.

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