Occupancy is Strong): East Side Story (Where

In Houston, East Houston doesn’t have many office buildings.

But the ones that it does have are pretty full.

The submarket is located along Interstate 10 East near working class neighborhoods, with reasonable proximity to the Houston Ship Channel.

The Submarket is 91.3 Percent Occupied

Colliers classifies it as Houston’s I-10 East office submarket. The submarket contains 1.5 million SF of office inventory which is currently 91.3 percent occupied. The average asking rental rate is $22.06 per SF.

Colliers’s David L. Carter just sold one of the rare Interstate 10 East office buildings.

Named the Atrium 10 Tower, it is a 79,956 SF office building, located at 11811 East Freeway in Houston, Texas. The buyer, 11811 Properties, was represented by Guy Brown of Texas Overland. Colliers represented the seller in the transaction.

Atrium 10 Tower is an office tower situated on 2.46 acres with frontage and direct access to Interstate 10 and the 610 Loop. The six-story, Class-B building is west of Federal Road. Built in 1980, it has 312 parking spaces.

Overall, the Houston office market has been soft with high vacancy rates as companies have been delaying real estate decisions or reducing their footprint due to work-from-home policies. In addition, a weakened energy business has created office vacancy in Houston.

Colliers reports citywide office vacancy was 23 percent in the second quarter. And emptiness is expanding. Houston’s office market continues to post negative net absorption recording negative 474,700 SF in Q2 2021, pushing the year-to-date total negative net absorption to 1,220,200 SF.