Q4 2020 | Houston Office | Research & Forecast Report

Houston’s office market continued to contract during the
fourth quarter
Research &
Forecast Report
HOUSTON | OFFICE
Q4 2020
Lisa Bridges Director of Market Research | Houston
Commentary by Patrick Duffy MCR
As you will see from our submarket analysis in this report, Houston
is a vast market and the submarket matters. The Houston MSA is
physically larger than nine states. From a population perspective,
we are larger than over thirty states. This summary includes all
of Houston as if it is a single, homogenous market – it is not.
Even within submarkets, some office buildings have significant
competitive advantages over others. Colliers believes that these
quarterly reports, with the submarket data tables included, can give
the reader a reasonable understanding of the market’s health and
trends but will never replace a specific requirement analysis for
granular understanding by a specific occupier/user. We hope you
find this information helpful and welcome the opportunity to dive
deeper with our clients.
The Houston Office Market continued to contract during the fourth
quarter as the COVID-driven, government-mandated lockdowns
continued. The fourth quarter ended with approximately 875,000
square feet of negative absorption following three consecutive
negative quarters in 2020. For the year, occupancy went down
approximately 3.9 million SF. We track absorption as the change
in physically occupied space between the current quarter and the
previous quarter. Negative absorption literally means that less office
space was occupied vs. discussing an increase in vacant space,
including new space delivery. Occupied office space dropped to
79% (21% vacant) of the total 238M square feet of space we track.
As we observed in Q3, despite the increase in vacancy, asking
lease rates stayed steady. However, the concession packages
became more aggressive in the last quarter, especially free rent
and tenant improvement allowances. The landlord’s theory seems
to be “accelerate occupancy, but hold the line on the long-term
rental income,” which has historically been a sound strategy during
perceived short-term economic downturns. Landlords continued to
show flexibility for short-term renewals requested by their tenants,
who did not have the confidence to extend for a typical 3 to 7-year
term. Clarity on the work from home (WFH) approach mandated
by many local governments and adopted by most large corporate
users, and the long-term strategies aligned with WFH is still hard to
come by. Most companies have reported that work is getting
Summary Statistics
Houston Office Market Q4 2019 Q3 2020 Q4 2020
Vacancy Rate 19.9% 21.7% 22.1%
Net Absorption 669,013 -1,490,910 -836,140
Deliveries 0 528,081 144,133
Under Construction 3,938,150 3,697,185 3,695,449
Class A Vacancy Rate
CBD
Suburban
22.5%
20.1%
23.8%
22.2%
24.2%
22.8%
Asking Rents
Per Square Foot Per Year
Houston Class A $35.97 $35.32 $35.91
CBD Class A $46.04 $44.01 $44.94
Suburban Class A $32.07 $32.09 $32.55
Market Indicators
Relative to prior period
Annual
Change
Quarterly
Change
Quarterly
Forecast*
VACANCY
NET ABSORPTION
DELIVERIES
UNDER CONSTRUCTION
*Projected
Share or view online at colliers.com/houston

0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
CBD Vacancy Suburban Vacancy
2 Houston Research & Forecast Report | Q4 2020 | Office | Colliers International
Commentary - continued
done. They can function more smoothly after a few months of practice with video
conferencing and online collaboration tools.
Last quarter we reported that “Most corporate leadership consensus seems to
have shifted from “it’s working surprisingly well” to “we do not see our normal
productivity, collaboration and innovation that we had when we were all working
in the same space.” Every seasoned office advisor knows that office space is not
just a place to work – if that is all it is, then remote work would quickly replace
it. Office environments are designed to attract talent, enhance collaboration and
productivity, act as a cultural leverage point, and create environments where
our employees’ intellectual capital is best deployed. If this is true, while remote
work might get the in-box emptied, it does not provide for the rest of the package
required to truly leverage our workforce’s talents. We see no change to that
position at year-end.
The COVID vaccines started their roll-out in December. They should be widely
distributed by the end of Q1 and potentially distributed/administered at a sufficient
level by the end of Q2 to finally bring a level of “herd immunity” required for
the lockdowns to be removed as a mandated counter-COVID approach. If this
forecast holds, we expect office users to return to the office in large numbers in
the 2nd half of 2021. Long term solutions for the need and configuration of space
are being vetted as we write this. There are many theories ranging from massive
structural changes to returning to a more pre-COVID approach. We tend to lean
toward the latter outcome. Shortly after the 9/11 attacks, the talking heads were
discussing the end of New York City as a major business hub and companies
abandoning high rise office space. Obviously, that did not happen. In the middle
of a storm, it is hard to predict long-term impacts. This storm is ending this year,
hopefully in the first half.
Speculative office construction should be minimal in the next two years and all
substantial new office construction will likely be tied to pre-leasing success.
We have decades of available office space on the ground today, given historical
absorption numbers. The migration of businesses from California and other less
business friendly states, and a probable stabilization in the energy sector, will
likely accelerate our recovery, but we have a very long way to go before we return
to a balanced occupancy in the Houston MSA.
Of the 1,680 existing office buildings in our survey, 92 buildings have 100,000 SF
or more contiguous space available for lease or sublease. There are 26 options
with 200,000 SF available for lease or sublease. Citywide, 6.6 million SF of
sublease space is listed as available and 2.6 million SF of the space is vacant.
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Q2
2014
Q4
2014
Q2
2015
Q4
2015
Q2
2016
Q4
2016
Q2
2017
Q4
2017
Q2
2018
Q4
2018
Q2
2019
Q4
2019
Q2
2020
Q4
2020
Houston Office Historical Available Sublease Space
Class A Class B Houston Total
Job Growth & Unemployment
(not seasonally adjusted)
UNEMPLOYMENT 11/19 11/20
HOUSTON 3.7% 8.9%
TEXAS 3.4% 8.0%
U.S. 3.4% 6.4%
JOB GROWTH
Annual
Change
# of Jobs
Lost
HOUSTON -4.6% -147.3K
TEXAS -3.8% -489.3K
U.S. -5.9% -9.1M
CBD vs. Suburban
CLASS A OFFICE VACANCY
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
CBD Rents Suburban Rents
CLASS A OFFICE RENTSHISTORICAL AVAILABLE SUBLEASE SPACE

Absorption & Demand
Houston’s office market posted negative net absorption of 836,140 SF in the fourth quarter, pushing the year-end 2020 total net
absorption to negative 3.9M SF. There were just a handful of submarkets with positive absorption in Q4 including Katy Grand Parkway,
Northwest, Southwest, The Woodlands and West Belt. Since tenants typically do not move into lease space immediately after signing a
lease, absorption lags and can occur at anytime after. We believe absorption numbers will trail even longer than usual in the short-term
due to the “stay-at-home” orders amid COVID-19, so absorption will more than likely remain negative moving into Q1 2021.
Rental Rates
Houston’s average asking rental rate increased over the quarter from $30.33 per SF to $31.02 per SF. Houston’s average suburban rental
rate rose from $27.47 per SF from $27.98 per SF and the average CBD asking rate increased from $40.00 per SF to $41.20 per SF. As
stated in the commentary, rental rates have remained relatively flat; however, landlords have been more generous with concessions.
Leasing Activity
Houston’s office leasing activity decreased 4.5% over the quarter from 2.2M SF to 2.1M SF. Leasing activity includes new/direct, sublet,
renewals, expansions in existing buildings, and pre-leasing in proposed buildings. Some of the more notable transactions that did occur in
Q4 2020 are listed in the table below.
Q4 2020 Select Office Lease Transactions
BUILDING NAME/ADDRESS SUBMARKET SF TENANT LEASE DATE
Westchase Park II Westchase 102,492 Vroom1
Dec-20
Park Place River Oaks West Loop/Galleria 81,990 JLL1
Dec-20
The Ion Allen Parkway/Midtown 58,000 CommonDesk1
Nov-20
Jefferson Towers at Cullen Center CBD 36,420 Houston Fire Department1
Dec-20
Reserve at Westchase Westchase 34,510 Yang Ming Marine Transportation Corp1
Oct-20
One Riverway West Loop/Galleria 25,965 Unilev Management Corporation3
Oct-20
The Ion Allen Parkway/Midtown 24,491 Microsoft1,2
Dec-20
The Woodlands Towers at The
Waterway
The Woodlands 14,654 Howard Hughes Corporation1,2
Dec-20
1
New/Direct 2
Colliers International Transaction 3
Renewal or Expansion
Sales Activity
Houston’s office investment sales volume increased over the quarter from $247 million in Q3 2020 to $330 million in Q4 2020. The
average sales price per square foot dropped from $251 to $177 per SF annually and Houston’s average office cap rate increased from 7.0%
to 7.4%, according to our data provider, Real Capital Analytics.
$0
$50
$100
$150
$200
$250
$300
$350
United States Houston
AVERAGE OFFICE SALES PRICE PER SF
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
United States Houston
AVERAGE OFFICE CAP RATE
Source: Real Capital Analytics

Houston Office Market Summary (CBD, Suburban, & Overall)
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q4-2020 Q3-2020 Q4-2020 Q3-2020
AVG
($/SF)
CBD
A 38 35,226,096 7,931,878 22.5% 580,617 1.6% 8,512,495 24.2% 23.8% -120,163 -110,271 $44.94
B 30 8,643,806 3,153,350 36.5% 105,245 1.2% 3,258,595 37.7% 36.5% -106,915 -85,176 $32.22
C 9 569,796 78,560 13.8% 0 0.0% 78,560 13.8% 13.8% 0 0 $24.00
Total 77 44,439,698 11,163,788 25.1% 685,862 1.5% 11,849,650 26.7% 26.2% -227,078 -195,447 $41.20
SUBURBAN
A 414 99,982,109 21,337,647 21.3% 1,450,051 1.5% 22,787,698 22.8% 21.5% -579,407 -769,301 $32.55
B 931 77,112,764 15,069,207 19.5% 547,394 0.7% 15,616,601 20.3% 19.2% -11,881 -511,023 $22.19
C 258 10,567,891 998,478 9.4% 2,569 0.0% 1,001,047 9.5% 9.3% -17,774 -15,139 $17.98
Total 1603 187,662,764 37,405,332 19.9% 2,000,014 1.1% 39,405,346 21.0% 20.6% -609,062 -1,295,463 $27.98
OVERALL
A 452 135,208,205 29,269,525 21.6% 2,030,668 1.5% 31,300,193 23.1% 21.2% -699,570 -879,572 $35.91
B 961 85,756,570 18,222,557 21.2% 652,639 0.8% 18,875,196 22.0% 20.0% -118,796 -596,199 $23.92
C 267 11,137,687 1,077,038 9.7% 2,569 0.0% 1,079,607 9.7% 9.5% -17,774 -15,139 $18.41
Total 1680 232,102,462 48,569,120 20.9% 2,685,876 1.2% 51,254,996 22.1% 21.7% -836,140 -1,490,910 $31.02
SUBLEASE
VACANCY
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q4-2020 Q3-2020 Q4-2020 Q3-2020
AVG
($/SF)
ALLEN PARKWAY (MIDTOWN)
A 10 2,497,830 331,352 13.3% 5,332 0.2% 336,684 13.5% 13.2% -7,764 -8,515 $39.35
B 34 2,592,886 370,287 14.3% 32,385 1.2% 402,672 15.5% 14.9% -15,059 -27,683 $40.15
C 11 341,346 90,164 26.4% 0 0.0% 90,164 26.4% 27.5% 3,815 0 $30.09
Total 55 5,432,062 791,803 14.6% 37,717 0.7% 829,520 15.3% 14.9% -19,008 -36,198 $38.67
BAYTOWN
B 2 114,474 11,093 9.7% 0 0.0% 11,093 9.7% 10.4% 858 0 $23.56
C 2 41,208 10,513 25.5% 0 0.0% 10,513 25.5% 25.5% 0 0 $0.00
Total 4 155,682 21,606 13.9% 0 0.0% 21,606 13.9% 14.4% 858 0 $21.45
BELLAIRE
A 5 1,004,245 142,825 14.2% 0 0.0% 142,825 14.2% 12.8% -14,060 2,386 $29.18
B 14 1,395,369 118,009 8.5% 0 0.0% 118,009 8.5% 8.0% -6,069 41,434 $22.57
C 5 283,569 78,593 27.7% 0 0.0% 78,593 27.7% 27.8% 230 0 $18.37
Total 24 2,683,183 339,427 12.7% 0 0.0% 339,427 12.7% 11.9% -19,899 43,820 $24.38
CONROE AND OUTLYING MONTGOMERY CO
A 2 84,913 0 0 0 0 0 0.0% 0.0% 0 0 0
B 8 295,893 0 0 0 0 0 0.0% 0.0% 0 0 0
C 5 217,634 6,100 2.8% 0 0.0% 6,100 2.8% 2.1% -1,600 0 0
Total 15 598,440 6,100 1.0% 0 0.0% 6,100 1.0% 0.8% -1,600 0 $0.00
E. FORT BEND CO SUGAR LAND
A 19 3,624,028 485,110 13.4% 37,742 1.0% 522,852 14.4% 12.2% -81,596 23,766 $36.72
B 39 2,238,806 318,324 14.2% 16,808 0.8% 335,132 15.0% 15.7% 63,698 36,572 $23.08
C 2 46,239 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $0.00
Total 60 5,909,073 803,434 13.6% 54,550 0.9% 857,984 14.5% 13.4% -17,898 60,338 $31.32
Houston Suburban Office Market Summary

Houston Suburban Office Market Summary - Continued
SUBLEASE
VACANCY
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL
(SF)
(SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q4-2020 Q3-2020 Q4-2020 Q3-2020
AVG
($/SF)
FM 1960
A 14 3,115,309 509,142 16.3% 23,916 0.8% 533,058 17.1% 17.4% 8,510 -57,673 $28.21
B 71 4,731,215 1,255,170 26.5% 16,540 0.3% 1,271,710 26.9% 26.1% -39,150 16,358 $17.13
C 25 837,598 68,783 8.2% 0 0.0% 68,783 8.2% 8.0% -1,897 -3,390 $16.34
Total 110 8,684,122 1,833,095 21.1% 40,456 0.5% 1,873,551 21.6% 21.2% -32,537 -44,705 $20.18
GREENWAY PLAZA
A 22 6,829,744 1,545,496 22.6% 91,057 1.3% 1,636,553 24.0% 20.6% -229,732 -136,992 $37.61
B 28 3,303,857 486,605 14.7% 17,626 0.5% 504,231 15.3% 14.7% -17,488 -21,040 $31.21
C 10 350,055 34,075 9.7% 1,700 0.5% 35,775 10.2% 11.1% 3,256 -33 $22.87
Total 60 10,483,656 2,066,176 19.7% 110,383 0.5% 2,176,559 20.8% 18.4% -243,964 -158,065 $35.86
GULF FREEWAY PASADENA
A 2 105,782 1,295 1.2% 0 0.0% 1,295 1.2% 1.2% 0 0 $32.03
B 42 2,338,415 309,479 13.2% 18,076 0.8% 327,555 14.0% 13.9% -3,333 -63,044 $20.73
C 22 788,638 93,570 11.9% 0 0.0% 93,570 11.9% 12.3% 3,256 -4,528 $28.43
Total 66 3,232,835 404,344 12.5% 18,076 0.6% 422,420 13.1% 13.1% -77 -67,572 $21.21
I-10 EAST
B 7 456,480 102,916 22.5% 0 0.0% 102,916 22.5% 23.5% 4,235 682 $16.72
C 4 150,124 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $0.00
Total 11 606,604 102,916 17.0% 0 0.0% 102,916 17.0% 17.7% 4,235 682 $16.72
KATY FREEWAY
A 86 21,804,532 3,788,174 17.4% 483,499 2.2% 4,271,673 19.6% 18.9% -154,619 -358,525 $34.73
B 114 10,333,239 2,334,489 22.6% 222,276 2.2% 2,556,765 24.7% 24.8% 3,736 -139,798 $22.34
C 26 1,185,767 77,992 6.6% 869 0.1% 78,861 6.7% 7.0% 4,504 -9,575 $20.08
Total 226 33,323,538 6,200,655 18.6% 706,644 2.1% 6,907,299 20.7% 20.3% -146,379 -507,898 $29.88
KATY GRAND PARKWAY WEST
A 16 1,639,391 360,335 22.0% 70,031 4.3% 430,366 26.3% 28.0% 29,027 17,307 $31.43
B 17 1,224,090 37,264 3.0% 0 0.0% 37,264 3.0% 2.5% -6,074 -5,211 $29.15
C 2 149,262 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $0.00
Total 35 3,012,743 397,599 13.2% 70,031 2.3% 467,630 15.5% 16.3% 22,953 12,096 $31.22
KINGWOOD HUMBLE
B 19 1,296,054 91,459 7.1% 0 0.0% 91,459 7.1% 7.2% 2,110 5,403 $21.74
C 4 120,762 210 0.2% 0 0.0% 210 0.2% 1.1% 1,090 533 $17.16
Total 23 1,416,816 91,669 6.5% 0 0.0% 91,669 6.5% 6.7% 3,200 5,936 $21.73
NASA CLEAR LAKE
A 14 1,839,042 265,288 14.4% 27,661 1.5% 292,949 15.9% 15.8% -2,954 26,586 $24.92
B 39 2,628,760 501,923 19.1% 13,534 0.5% 515,457 19.6% 19.3% -6,906 4,575 $18.87
C 15 440,364 68,861 15.6% 0 0.0% 68,861 15.6% 11.6% -17,864 5,776 $18.10
Total 68 4,908,166 836,072 17.0% 41,195 1.4% 877,267 17.9% 17.3% -27,724 36,937 $20.73
NORTH BELT GREENSPOINT
A 26 5,583,640 3,376,489 60.5% 0 0.0% 3,376,489 60.5% 60.5% 1,450 -3,640 $20.54
B 53 5,469,203 1,743,999 31.9% 18,912 0.3% 1,762,911 32.2% 31.9% -17,034 -1,367 $15.78
C 22 1,264,779 188,783 14.9% 0 0.0% 188,783 14.9% 14.4% -6,840 -14,697 $11.26
Total 101 12,317,622 5,309,271 43.1% 18,912 1.4% 5,328,183 43.3% 43.1% -22,424 -19,704 $18.65
NORTHEAST NEAR AND OUTLIER
A 3 642,223 14,025 2.2% 0 0.0% 14,025 2.2% 2.2% 0 0 $0.00
B 4 183,158 26,294 14.4% 6,744 3.7% 33,038 18.0% 18.7% 1,260 -1,174 $21.91
C 2 57,823 25,321 43.8% 0 0.0% 25,321 43.8% 44.8% 588 7,277 $15.00
Total 9 883,204 65,640 7.4% 6,744 0.8% 72,384 8.2% 8.4% 1,848 6,103 $14.56

SUBLEASE
VACANCY
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL
(SF)
(SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q4-2020 Q3-2020 Q4-2020 Q3-2020
AVG
($/SF)
NORTHWEST AND NORTHWEST OUTLIER
A 11 2,100,770 655,103 31.2% 0 0.0% 655,103 31.2% 32.6% 30,475 37,416 $24.72
B 73 5,581,658 899,631 16.1% 11,271 0.2% 910,902 16.3% 15.8% -4,886 30,381 $20.28
C 32 1,290,686 66,743 5.2% 0 0.0% 66,743 5.2% 5.3% 1,500 3,376 $13.76
Total 116 8,973,114 1,621,477 18.1% 11,271 0.1% 1,632,748 18.2% 18.2% 27,089 71,173 $21.81
RICHMOND FOUNTAINVIEW
B 14 852,602 112,029 13.1% 0 0.0% 112,029 13.1% 12.5% -5,284 12,776 $17.75
C 9 314,300 11,582 3.7% 0 0.0% 11,582 3.7% 1.1% -8,000 0 $15.09
Total 23 1,166,902 123,611 10.6% 0 0.0% 123,611 10.6% 9.5% -13,284 12,776 $17.50
SAN FELIPE VOSS
A 3 1,714,911 514,068 30.0% 21,547 1.3% 535,615 31.2% 31.7% 8,128 -115,518 $35.24
B 33 3,396,146 743,403 21.9% 14,000 0.4% 757,403 22.3% 21.2% -37,393 16,757 $25.67
Total 36 5,111,057 1,257,471 24.6% 35,547 0.7% 1,293,018 25.3% 24.7% -29,265 -98,761 $29.58
SOUTH
B 12 389,386 97,801 25.1% 0 0.0% 97,801 25.1% 13.0% 4,489 -7,244 $25.72
C 4 165,387 23,477 14.2% 0 0.0% 23,477 14.2% 14.2% 0 0 $20.00
Total 16 554,773 121,278 21.9% 0 0.0% 121,278 21.9% 11.9% 4,489 -7,244 $27.26
SOUTH MAIN MEDICAL CENTER
B 10 858,830 111,123 12.9% 0 0.0% 111,123 12.9% 12.4% -4,734 6,135 $20.91
C 6 202,325 43,322 21.4% 0 0.0% 43,322 21.4% 21.4% 0 1,763 $17.84
Total 16 1,061,155 154,445 14.6% 0 0.0% 154,445 14.6% 14.1% -4,734 7,898 $16.65
SOUTHEAST
B 15 1,173,999 6,448 0.5% 0 0.0% 6,448 0.5% 0.7% 2,120 2,745 $16.00
C 2 322,220 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $0.00
Total 17 1,496,219 6,448 0.4% 0 0.0% 6,448 0.4% 0.8% 2,120 2,745 $15.91
SOUTHWEST
A 6 1,586,913 428,026 27.0% 0 0.0% 428,026 27.0% 27.1% 1,497 15,288 $17.65
B 60 6,042,317 1,230,472 20.4% 2,418 0.0% 1,232,890 20.4% 21.2% 50,225 -118,852 $17.29
C 28 1,331,235 86,404 6.5% 0 0.0% 86,404 6.5% 6.0% -6,790 1,557 $13.83
Total 94 8,960,465 1,744,902 19.5% 2,418 0.0% 1,747,320 19.5% 20.0% 44,932 -102,007 $17.21
SOUTHWEST FAR AND OUTLIER
A 4 668,435 40,681 6.1% 0 0.0% 40,681 6.1% 6.1% 0 0 $0.00
B 12 656,270 23,241 3.5% 0 0.0% 23,241 3.5% 3.5% 0 -9,652 $23.29
C 3 91,661 2,500 2.7% 0 0.0% 2,500 2.7% 2.7% 0 0 $0.00
Total 19 1,416,366 66,422 4.7% 0 0.0% 66,422 4.7% 4.7% 0 -9,652 $26.23
THE WOODLANDS
A 58 13,262,897 1,497,712 11.3% 93,747 0.7% 1,591,459 12.0% 13.0% 127,787 -32,163 $37.22
B 63 4,389,933 905,774 20.6% 55,047 1.3% 960,821 21.9% 21.3% -24,301 -79,528 $33.03
C 5 131,696 2,220 1.7% 0 0.0% 2,220 1.7% 1.7% 0 0 $18.50
Total 126 17,784,526 2,405,706 13.5% 148,794 0.8% 2,554,500 14.4% 14.9% 103,486 -111,691 $35.63
WEST BELT
A 28 3,682,209 829,471 22.5% 171,238 4.7% 1,000,709 27.2% 26.6% -20,309 -1,827 $27.76
B 36 2,064,513 515,030 24.9% 13,728 0.7% 528,758 25.6% 27.3% 34,700 -5,268 $25.24
C 4 112,629 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $0.00
Total 68 5,859,351 1,344,501 22.9% 184,966 3.2% 1,529,467 26.1% 26.3% 14,391 -7,095 $26.79

7 Houston Research & Forecast Report | Q4 2020 | Office | Colliers International7
Office Development Pipeline
4.2 million SF of office space is under construction, and approximately 63% is pre-leased. 2.4 million SF is spec development, of which
57% is pre-leased. Below is a summary of the office buildings under construction with a GBA of 150,000 SF or greater.
BUILDING NAME ADDRESS SUBMARKET SF
PRE-
LEASED
DEVELOPER/CONTRACTOR
EST.
DELIVERY
Texas Tower 845 Texas Ave CBD 1,101,856 39.1% Hines Securities, Inc. Oct-21
One MRO 990 Town & Country Blvd Katy Freeway 440,000 100% Hines Dec-21
Crown Castle International 8020 Katy Freeway Katy Freeway 420,000 100% Excel Commercial Jan-21
The Ion 4201 Main St Allen Parkway (Midtown) 288,000 53.2% Hines Feb-21
HPE Building 3 City Place Dr The Woodlands 284,000 100% Patrinely Group, LLC Dec-21
HPE Building 4 City Place Dr The Woodlands 284,000 100% Patrinely Group, LLC Dec-21
Insperity Campus Bldg 5 US-59 N & Kingwood Dr. Kingwood/Humble 270,000 100% Insperity with D E Harvey Cleary Jan-21
9753 Katy Fwy 9753 Katy Freeway Katy Freeway 190,000 15.1% MetroNational Corporation Jun-21
Montrose Collective 888 Westheimer Allen Parkway Midtown 170,000 39.2% Random Capital LLC Sep-21
Village Tower II 9655 Katy Freeway Katy Freeway 150,000 6.0% Moody National Companies Mar-21
Post Houston 401 Franklin St CBD 150,000 19.3% Lovett Commercial Feb-21
SUBLEASE
VACANCY
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS.
TOTAL
(SF)
(SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q4-2020 Q3-2020 Q4-2020 Q3-2020
AVG
($/SF)
WEST LOOP GALLERIA
A 52 17,329,557 4,120,702 23.8% 293,704 1.7% 4,414,406 25.5% 24.2% -219,687 -225,443 $39.26
B 48 5,348,713 868,063 16.2% 46,293 0.9% 914,356 17.1% 17.3% 8,712 -82,938 $25.55
C 3 153,712 13,034 8.5% 0 0.0% 13,034 8.5% 8.5% 0 0 $18.75
Total 103 22,831,982 5,001,799 21.9% 339,997 1.5% 5,341,796 23.4% 22.5% -210,975 -308,381 $36.83
WESTCHASE
A 33 10,865,738 2,432,353 22.4% 130,577 1.2% 2,562,930 23.6% 23.1% -55,560 48,246 $35.24
B 64 7,756,498 1,848,881 23.8% 41,736 0.5% 1,890,617 24.4% 24.4% -313 -122,042 $21.85
C 5 176,872 6,231 3.5% 0 0.0% 6,231 3.5% 7.5% 6,978 -3,198 $14.50
Total 102 18,799,108 4,287,465 22.8% 172,313 0.9% 4,459,778 23.7% 23.5% -48,895 -76,994 $28.65
Quoted gross rental rates for existing top performing office buildings
BUILDING NAME ADDRESS SUBMARKET RBA (SF)
YEAR
BUILT
%
LEASED
AVAIL.
SF
RENT
($/SF)
OWNER
811 Main 811 Main St CBD 972,474 2011 99.2% 78,982 $63.41 Invesco Advisers, Inc.
The Texas Drive Building 2245 Texas Dr E Fort Bend Co/
Sugar Land
166,000 2009 91.4% 29,841 $41.13 Lionstone Partners, LLC
Kirby Grove 2925 Richmond Ave Greenway Plaza 248,275 2015 96.2% 27,782 $47.33 GG Kirby Grove LP
CityCentre Three 842 W Sam Houston Pky N Katy Freeway 120,226 2012 91.8% 9,915 $50.10 Midway
Williams Tower 2800 Post Oak Blvd West Loop/Galleria 1,476,973 1983 84.4% 389,521 $51.00 Invesco Advisers, Inc.
Two Hughes Landing 1790 Hughes Landing Blvd The Woodlands 197,696 2014 83.4% 32,758 $45.76-
$47.76
The Howard Hughes
Corporation
Two BriarLake Plaza 2050 W Sam Houston Pky S Westchase 333,100 2014 88.1% 61,382 $52.66 Cousins Properties
Note: Available SF includes direct and sublet space as well as any future available space currently listed.
Source: CoStar Property

8 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
Colliers International | Market
000 Address, Suite #
000 Address, Suite #
+1 000 000 0000
colliers.com/<<market>>
8 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2020 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
Colliers International | Houston
1233 West Loop South, Suite 900
Houston, Texas 77027
+1 713 222 2111
colliers.com/houston
FOR MORE INFORMATION
Lisa Bridges CPRC
Director of Market Research | Houston
+1 713 830 2125
lisa.bridges@colliers.com
Colliers statistical criteria
includes all general purpose multi
and single tenant office buildings
20,000 SF or greater.
Patrick Duffy MCR
President | Houston
+1 713 830 2112
patrick.duffy@colliers.com
Q4 2020 Houston Office Highlights
22.1% -836,140 SF
VACANCY QUARTERLY ABSORPTION
CLASS A: 58% CLASS B: 37% CLASS C: 5%
TOTAL INVENTORY BY CLASS
CURRENT
135.2M SF 85.8M SF
11.1M SF
TOTAL OFFICE
INVENTORY 232.1M SF
8.0M SF
2.1M SF
LEASING
ACTIVITY
-4.5%
QUARTERLY
DECREASE
UNDER
CONSTRUCTION 3.7M SF
NEW
CONSTRUCTION
(DELIVERIES)
144,133 SF
31
600 TRAVIS
600 Travis Street
1,656,529 / 22,575 / 75
91.5%
253,827
43,476
$46.32
1.0
Hines
717 TEXAS
717 Texas Avenue
697,195 / 21,127 / 33
65.3%
277,548
191,742
$45.07
2.1
Hines
TC ENERGY CENTER
700 Louisiana Street
1,268,480 / 25,000 / 56
71.3%
395,598
83,381
$44.77
2.0
M-M Properties
2
TEXAS TOWER
845 Texas Avenue
1,101,856 / 30,700 / 47
39.1%
671,342
671,342
$65.00
1.5
Hines
BUILDING NAME
ADDRESS
RBA / AVG FLOOR / # OF FLOORS
% LEASED
TOTAL AVAILABLE SF
MAX CONTIGUOUS SF
QUOTED RATE**
PARKING RATIO
OWNER
AVAILABLE* SUBLEASE*
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
1100 LOUISIANA
1,327,882 / 23,060 / 55
80.9%
254,323
160,256
$43.70
1.8
Enterprise Products
Partners L.P.
HERITAGE PLAZA
1111 Bagby Street
1,149,635 / 26,652 / 51
90.4%
245,326
108,565
$53.85
2.4
AEW Capital
Management
CENTERPOINT ENERGY
1,081,251 / 22,968 / 47
100%
0
0
N/A
2.5
CenterPoint Energy, Inc.
ONE ALLEN CENTER
500 Dallas Street
993,775 / 29,229 / 34
85.3%
298,760
83,109
$47.20
1.0
Brookfield Office
Properties, Inc.
KINDER MORGAN BLDG.
937,003 / 28,510 / 32
100%
124,600
124,600
N/A
1.0
Kinder Morgan, Inc.
2120 25242322
WELLS FARGO PLAZA
1,721,242 / 24,243 / 71
73.6%
515,964
101,773
$48.73
1.7
New York State Common
Retirement Fund
BUILDING NAME
ADDRESS
% LEASED
TOTAL AVAILABLE SF
MAX CONTIGUOUS SF
QUOTED RATE**
PARKING RATIO
OWNER
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
811 MAIN STREET
811 Main Street
972,474 / 27,000 / 46
99.2%
78,982
53,785
$51.78
1.2
Invesco Advisers, Inc.
ONE SHELL PLAZA
1,228,923 / 24,572 / 50
89.0%
161,992
125,824
$43.84
0.3
Enterprise Products
Partners L.P.
NORTH BLDG
700 Milam Street
694,021 / 20,523 / 36
73.2%
276,258
122,496
$40.06
3.0
Metropolis Investment
Holdings Inc.
2 HOUSTON CENTER
909 Fannin Street
1,024,956 / 25,624 / 40
76.2%
288,276
68,043
$49.76
1.0
Brookfield Asset
Management Inc.
LYONDELLBASELL TOWER
1221 McKinney Street
1,065,215 / 24,000 / 46
79.0%
223,813
93,454
$47.04
1.0
Brookfield Asset
Management Inc.
811 LOUISIANA
588,423 / 31,500 / 26
60.6%
225,908
114,504
$47.21
2.0
Enterprise Products
Partners L.P.
SOUTH BLDG
666,762 / 20,000 / 34
62.9%
298,491
247,414
$40.06
3.0
Metropolis Investment
Holdings Inc.
FULBRIGHT TOWER
1,247,061 / 24,452 / 51
64.4%
549,453
74,680
$45.53
1.0
Brookfield Asset
Management Inc.
5 HOUSTON CENTER
580,875 / 29,649 / 27
71.1%
176,131
118,428
$49.87
2.0
Spear Street Capital
1211
15
134 5 106PENNZOIL PLACE
609 MAIN AT TEXAS
609 Main Street
1,057,237 / 28,000 / 48
95.3%
117,079
28,337
$58.00
1.7
Hines
9
ONE CITY CENTRE
1021 Main Street
608,660 / 21,266 / 29
38.0%
467,803
167,663
$33.53
2.3
Accesso Partners, LLC
1000 MAIN
1000 Main Street
837,161 / 23,333 / 36
62.2%
312,428
144,394
$49.72
1.7
1000 Main Llc
1001 FANNIN
1001 Fannin Street
1,385,212 / 27,097 / 49
77.0%
784,486
338,026
$50.20
1.0
JMB Financial Advisors
191716
HILCORP ENERGY TOWER
1111 Main Street
406,600 / 17,678 / 23
95.7%
0
0
N/A
N/A
Hilcorp Ventures Inc.
18
CLASS A OFFICE BUILDINGS
CENTRAL BUSINESS DISTRICT HOUSTON, TEXAS
JANUARY 2021
338,026 SF
Available
Feb. 2022
167,663 SF
Under
Construction
Delivering
10/21
14
Bank of America Tower
800 Capitol St
780,341 / 31,402 / 35
89.2%
64,594
31,257
$39.00 NNN
2.0
Beacon Capital Partners
7 8
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Available Sublease Space
Central Business District
Class A Class B
Available Sublease Space
Q4 2020
Class A: 1,083,345 SF or 3.0%
Class B: 270,388 SF or 3.1%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Available Direct Space
Central Business District
Class A Class B
Available Direct Space
Q4 2020
Class A: 9,670,131 SF or 26.5%
Class B: 3,378,176 SF or 39.1%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
$36.00
$38.00
$40.00
$42.00
$44.00
$46.00
$48.00
Class A Rental Rate and Vacancy Percentage
Central Business District - Houston, TX
CBD Class A Rents CBD Class A Vacancy
*Vacancy percentage includes direct and sublease space.
AVAILABLE* SUBLEASE*
BUILDING NAME
ADDRESS
% LEASED
TOTAL AVAILABLE SF
MAX CONTIGUOUS SF
QUOTED RATE**
PARKING RATIO
OWNER
1500 LOUISIANA
1,157,690 / 25,263 / 40
100%
0
0
N/A
1.1
ChevronTexaco Corp.
1301 FANNIN OFFICE TOWER
1301 Fannin Street
784,143 / 26,000 / 24
75.9%
150,097
67,544
$38.56
1.0
Netrality Properties
1400 SMITH
1400 Smith Street
1,250,677 / 25,013 / 50
100%
0
0
N/A
N/A
Chevron Corporation
1600 SMITH
1600 Smith Street
1,098,399 / 23,000 /51
57.2%
492,025
304.302
$38.73
1.0
Brookfield Office Properties, Inc.
WEDGE INT’L TOWER
536,626 / 18,000 / 43
57.6%
280,206
74,382
$32.31
2.7
Wedge Group, Inc.
HESS TOWER
844,763 / 30,500 /29
100%
61,682
61,682
N/A
1.5
H&R REIT
GreenStreet Tower
1201 Polk Street
275,223 / 25,020 / 11
100%
275,223
194,768
N/A
1.5
Midway Companies/
Lionstone Investments
31 3229 3330 34 35
TWO ALLEN CENTER
1200 Smith Street
995,623 / 26,613 / 36
65.9%
438,294
171,358
$45.59
1.0
Brookfield Office
Properties, Inc.
THREE ALLEN CENTER
333 Clay Street
1,194,719 / 25,000 /50
84.6%
248,253
92,453
$46.70
1.0
Brookfield Office
Properties, Inc.
TOTAL PLAZA
843,533 / 24,600 / 35
95.1%
174,428
64,912
$43.17
1.0
Brookfield Office
Properties, Inc.
2826 27
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75 CLASS A OFFICE BUILDINGS
CENTRAL BUSINESS DISTRICT HOUSTON, TEXAS
JANUARY 2021
*Gold and white indicators are approximate only at the time of printing and are presented to show approximate
percentage of available space by floor/building. All indicators are left-to-right and are not meant to show location
of available space.
**Rental rates listed are net + operating expenses.
194,768 SF Sublease
thru 2/2021
COLLIERS INTERNATIONAL
1233 West Loop South, Suite 900
Houston, TX 77027
www.colliers.com/texas
28
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COMMERCIAL REAL ESTATE SECTORS REPRESENTED
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