Houston Office market ended the first quarter 2014 with a vacancy rate of 11.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,549,293 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 1,880,574 square feet. Rental rates ended the first quarter at $26.27, an increase over the previous quarter. A total of 36 buildings delivered to the market in the quarter totaling 2,473,507 square feet, with 12,599,197 square feet still under construction at the end of the quarter.
Net absorption for the overall Houston office market was positive 2,549,293 square feet in the first quarter 2014. That compares to positive 1,823,837 square feet in the fourth quarter 2013, positive 1,840,096 square feet in the third quarter 2013, and positive 709,463 square feet in the second quarter 2013.