Houston, TX – July 7, 2009 – (RealEstateRama) — Houston incurred 720,000 square feet of negative absorption in the second quarter of 2009, according to CB Richard Ellis’ Houston research group. The loss nearly doubles the city’s first quarter loss, signifying that even Houston’s strong market is no match for the country’s current economic situation.
The overall Class A market suffered 241,000 square feet of negative absorption with the corresponding suburban markets and CBD providing 178,000 square feet and 64,000 square feet of negative absorption, respectively. Sublease space was up from first quarter with 722,000 square feet, bringing an overall 3.8-million square feet to market.
Close to two million square feet of office product was delivered in second quarter with 985,000 square feet, or 50% leased, and only 794,000 square feet, or 40.3% occupied. Four million square feet remain in development stages with 50% pre-leased, according to the CBRE report.
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CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company three years in a row and a Fortune 100 fastest growing company two years in a row. Please visit our Web site at www.cbre.com