Houston's commercial real estate industry is likely going to continue to struggle for the next several months.
Experts believe vacancy levels will continue to rise even as the market rebounds from the pandemic and stay-at-home orders. Oil and Gas companies are evaluating how much office space they'll need amid the drop in price. All of this on top of a nationwide trend: businesses who don't need as much space because of employees working from home. Cody Payne is a commercial real estate expert with Colliers International.
“At the end of the day, the Texas economy is one of the most important in the U.S. and I believe companies are going to continue to come to Texas and grow and expand, so those spaces will get absorbed over time,” Payne said.
Payne says for the most part, companies who rent office space have been able to keep up on their rent in Texas more than in other states. He says shared work spaces are likely to do well, as companies re-evaluate whether they need a traditional office.