East Side Story: Thriving Neighborhood with High Occupancy

HOUSTON – (Realty News Report) – East Houston has relatively few office buildings, but the ones that exist are largely occupied.

This submarket sits along Interstate 10 East, close to working-class neighborhoods and within reasonable distance of the Houston Ship Channel.

Submarket Occupancy Reaches 91.3 Percent

Colliers designates this area as Houston’s I-10 East office submarket. That market includes approximately 1.5 million square feet of office space and is currently 91.3 percent occupied. The average asking rent is $22.06 per square foot.

David L. Carter of Colliers recently completed the sale of one of the few office properties available in the I-10 East submarket.

The property, Atrium 10 Tower, is a 79,956-square-foot office building located at 11811 East Freeway in Houston, Texas. The buyer, 11811 Properties, was represented by Guy Brown of Texas Overland, while Colliers represented the seller.

Atrium 10 Tower occupies 2.46 acres and offers frontage with direct access to Interstate 10 and the 610 Loop. The six-story Class B building, located just west of Federal Road, was built in 1980 and includes 312 parking spaces.

Across the broader Houston market, office conditions remain challenging. Many companies have delayed leasing decisions or reduced their physical footprint due to remote work trends. In addition, softness in the energy sector has contributed to elevated vacancy levels.

Colliers reports that citywide office vacancy was 23 percent in the second quarter. Net absorption has been negative, with Houston recording negative 474,700 square feet in Q2 2021 and a year-to-date negative net absorption of 1,220,200 square feet.

For more on Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available on Amazon.

Houston 2020 Ebook version

File: East Side Story (Where Occupancy is Strong)

File: (2) Colliers East Side Story (Where Occupancy is Strong). I-10 East.