Employment services job growth increased 1.7% in the Houston metro area falling below the 10-year annual average of 2.4%. Another slow year is expected in 2016 as further energyrelated layoffs are anticipated. As the oil downturn continues to weaken the metro economy, Houston's diversification will become vital to sustaining economic growth in the near-term. Office leasing has slowed with activity driven largely by tenant expirations and consolidations. Sublease inventories remain on the rise with additional blocks from energy companies expected to hit the market in the first half of 2016. Net absorption totaled 3.9 million SF for 2015, largely from Class A space and preleased deliveries. If the current economic conditions persist, 2016 and likely 2017 will be challenging years for the Houston office market.
Source : BNP Paribas Real Estate