Net absorption bounced back from a somewhat lackluster H2 2018, coming in at a solid 244,745 sq. ft. in the first half of 2019.
Over 1.3 million sq. ft. of product is currently under construction across the Houston metro, which is double the amount that was recorded in H2 2018.
An increase in product delivery by nearly 300,000 sq. ft. caused overall market vacancy to inch up 120 basis points from H2 2018 to 12.5%.
Average market rents continue to rise across the Houston metro, jumping $0.89 from H2 2018 to $27.89 per sq. ft. in H1 2019.
Houston's health care industry is expected to add upwards of 9,000 jobs by the end of the year - the best performing among all job sectors.
Medical office sales took a slight step back from the large volume of transactions that was seen in 2018; the most notable transactions that took place in the first half of the year include Welltower's purchase of two CNL Healthcare Properties' medical office buildings at 5410 and 5420 West Loop South.