flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Houston's energy sector keeps office construction humming

Office Buildings

Houston's energy sector keeps office construction humming

Colliers International projects continued expansion this year in its quarterly report on national office market. 


By John Caulfield, Senior Editor | June 12, 2015
Houston's energy sector keeps office construction humming

Colliers International’s 2015 North America Office Market report assessed 92 markets in the U.S. and Canada. Image: Pixabay

Houston continues to be a paradise for AEC firms. The Texas metroplex has more than 14.4 million sf of office construction in the works, making it the No. 1 market in North America for office building, according to Colliers International’s 2015 North America Office Market report.

This report assesses 92 markets in the U.S. and Canada, and analyzes factors and trends that might impact the office construction market’s health. Despite a slow first quarter, Colliers is forecasting growth for this year.

The top 10 markets in North America, in descending order, are Houston, Seattle/Puget Sound, San Jose, Washington D.C., Dallas, Toronto, Calgary, San Francisco, Boston, and Phoenix. Combined, they accounted for 58% of the 113.8 million sf of office space underway in the U.S. and Canada in the first quarter of this year. That percentage is more than double these markets’ 27% share of existing office inventory.

As of the first quarter, office construction in the United States stood at 95.2 million sf, or 1% off from the same period a year earlier. However, deliveries in the first quarter, at 16 million sf, were the highest they’d been since the third quarter of 2009. Colliers says demand for new space “remains voracious” high-tech oriented markets. On the other hand, the greatest oversupply risk is in energy driven markets.

Colliers still sees the U.S. office market as positioned for expansion this year. “Growth in nearly every subsector of the primary office-using employment sectors in Q1 2015 despite numerous headwinds bodes well for office demand going forward,” it predicts. And outside of a handful of markets, oversupply is not a concern. 

Among the 10 largest office construction markets:

• Seattle has 8.29 million sf under construction, the vast majority of which is being built in its downtown area, where existing inventory exceeds 56 million sf.

• In San Jose, all of its 8.1 million sf of new office construction is occurring in the suburbs, which already have 68.4 million sf of existing office space available, but where San Jose’s vacancy rate is only 8%.

• Washington D.C. has an 11.7% urban vacancy rate and a 17.5% suburban vacancy rate. Nevertheless, Washington has nearly 4.4.million sf of office space under construction in its suburbs, and another 2.4 million sf being built in its downtown. 

• Only 450,000 sf of the 5.8 million sf of offices under construction in Dallas will be downtown. The same dynamic is occurring in Houston, where only 1.4 million sf of its total office construction is downtown. 

Related Stories

| Jan 3, 2012

Rental Renaissance, The Rebirth of the Apartment Market

Across much of the U.S., apartment rents are rising, vacancy rates are falling. In just about every major urban area, new multifamily rental projects and major renovations are coming online. It may be too soon to pronounce the rental market fully recovered, but the trend is promising.

| Dec 29, 2011

Seismic safety in question at thousands of California public schools

California regulators responsible for enforcing earthquake safety laws have failed to certify more than 16,000 construction projects in California public schools, increasing the risk that some projects may be unsafe, according to a state audit report.

| Dec 21, 2011

BBI key to Philly high-rise renovation

The 200,000 sf building was recently outfitted with a new HVAC system and a state-of-the-art window retrofitting system.

| Dec 20, 2011

Research identifies most expensive U.S. commercial real estate markets

New York City, Washington, D.C. and San Mateo, Calif., rank highest in rents.

| Dec 20, 2011

Aragon Construction leading build-out of foursquare office

The modern, minimalist build-out will have elements of the foursquare “badges” in different aspects of the space, using glass, steel, and vibrantly painted gypsum board.

| Dec 19, 2011

Chicago’s Aqua Tower wins international design award

Aqua was named both regional and international winner of the International Property Award as Best Residential High-Rise Development.

| Dec 19, 2011

Davis Construction breaks ground on new NIAID property

The new offices will total 490,998 square feet in a 10-story building with two wings of 25,000 square feet each. 

| Dec 14, 2011

Belfer Research Building tops out in New York

Hundreds of construction trades people celebrate reaching the top of concrete structure for facility that will accelerate treatments and cures at world-renowned institution.

| Dec 13, 2011

Lutron’s Commercial Experience Center awarded LEED Gold

LEED certification of the Lutron facility was based on a number of green design and construction features that positively impact the project itself and the broader community. These features include: optimization of energy performance through the use of lighting power, lighting controls and HVAC, plus the use of daylight.

| Dec 12, 2011

AIA Chicago announces Skidmore, Owings & Merrill as 2011 Firm of the Year

SOM has been a leader in the research and development of specialized technologies, new processes and innovative ideas, many of which have had a palpable and lasting impact on the design profession and the physical environment. 

boombox1
boombox2
native1

More In Category

Office Buildings

Unlocking Sustainability: Smart Access in the Coworking Space

Smart building technologies, including modern access control systems, are transforming coworking spaces by advancing sustainability initiatives and offering new ways to create and operate efficient working spaces. Learn more about the benefits of eco-friendly practices, from reducing carbon emissions to cutting operating costs, and discover 
how choosing the right partners can amplify your green efforts.


Adaptive Reuse

Detroit’s Michigan Central Station, centerpiece of innovation hub, opens

The recently opened Michigan Central Station in Detroit is the centerpiece of a 30-acre technology and cultural hub that will include development of urban transportation solutions. The six-year adaptive reuse project of the 640,000 sf historic station, created by the same architect as New York’s Grand Central Station, is the latest sign of a reinvigorating Detroit.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021