Houston’s office market continues to recover from the aftershock of the oil downturn. Things seem to have turned a corner; the metro has absorbed 2,242,380 SF over the past year, the highest absorption rate seen in several years’ time.
Although Houston’s economy has diversified substantially in recent years, the city’s office market remains strongly tied to the performance of the energy sector. Oil prices climbed from a bottom of $26/barrel in February 2016 to a high of $75/barrel in October 2018, before falling to between $55/barrel and $60/barrel as of 19Q1. Volatility in oil prices causes uncertainty that may slow energy companies’ growth plans. The majority of Houston’s Fortune 500 oil companies are profitable again, and onethird of the oil jobs lost during the oil downturn have been gained back.2019 - Houston 2019 Q1 Office Market Report