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Most of the new construction is speculative and concentrated in traditionally strong office-using districts, such as the Energy Corridor, Galleria and Westchase.
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Houston holds steady this year at No. 18.
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“The investment outlook for Houston remains bright, supported by prospects for long-term economic growth and initial yields in the mid- to high-7 percent range,” says Michael E. Hoffman, (photo at right) regional manager of Marcus & Millichap’s Houston office.
Following are some of the most significant aspects of the Houston Office Research Report:
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· The return of speculative construction will accelerate deliveries to 3.3 million square feet, boosting office stock 2.1 percent.
· Vacancy is forecast to end the year at 12.1 percent.
· Higher rents for Class A space and relatively tight conditions will facilitate a 6.3 percent increase in marketwide asking rents to $23.60 per square foot.
· Effective rents are forecast to advance 6.7 percent to $20.68 per square foot.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.
Contact:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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