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Overall availability declines, even as pace of leasing activity slows
Leasing activity tapered off over the fourth quarter, totaling 3.1 million square feet (msf), a decline from both the previous quarter and the same period last year. Year-to-date activity totaled 13.3 msf, down 10.1% from last year's total of 14.8 msf. Despite the overall slowdown in leasing activity, Houston’s overall availability rate declined 50 basis points quarter over quarter to 25.8%. Market-wide Class A availability followed the same trend, declining 30 basis points over the quarter to 27.4%. In response to tightening availability across the market, overall asking rents increased marginally year over year (2.0%), ending the quarter at $29.39 per square foot (psf). Asking rates at the submarket level remained relatively flat, apart from The Woodlands and Pasadena/Baytown submarkets which saw quarterly growth of 2.6% and 5.5%, respectively.