The highly anticipated Bank of America Tower delivered at 800 Capitol in the CBD submarket this June at 88% preleased, which included the signature tenants Bank of America with 210,000 sq. ft. and Waste Management with 284,000 sq. ft. The 35-story Class A tower, with 756,000 sq. ft. of office and 24,000 sq. ft. of retail, exemplifies the latest in technology and sustainability designed to help tenants attract and retain top talent.
Asking rates increased from $29.28 per sq. ft. in Q1 2019 to $29.47 per sq. ft. in Q2 2019.
Though the overall Houston office market saw vacancy rise Q-on-Q by 40 basis points, move-ins scheduled into the new year suggest vacancy rates are poised to decline in the coming quarters.
Q2 2019 ended with net absorption of negative 393,685 sq. ft. The West Loop / Galleria submarket ended the quarter with absorption of negative 410,000 sq. ft. Despite the softness in the West Loop / Galleria, other submarkets posted strong results for Q2 2019. The CBD submarket took the lead with absorption of 289,000 sq. ft. in part due to the delivery of Bank of America Tower.