Business

Houston Commercial Real Estate Market ‘Slower But Not Sluggish’

CBRE releases its quarterly report for Greater Houston.

Houston’s retail and industrial real estate markets are doing well, while office is slow to recover from the oil downturn.

Many sectors of Houston’s real estate market have been affected by the oil downturn – some more than others.

The office market, for example, has suffered as a declining workforce has left many Houston offices empty.

But retail and industrial properties have been doing well, said Robert Kramp, director of research at CBRE’s Texas and Oklahoma region.

“We have seen something of a pullback on that but it’s a natural pullback coming off of a peak,” he said. “And that peak was driven primarily through population gains in 2014 and 2015 into 2016.”

The office market, meanwhile, will be the slowest to come back, Kramp said.

The oil downturn – and simultaneous petrochemical boom – have also led to a geographical shift in commercial and residential real estate.

“We’re now seeing pockets like east Houston, Baytown, Pasadena, League City that are neck-and-neck with the residential growth in west Houston,” he said. “About 2.5 percent.”  

Kramp expects the eastside growth to continue, as evidenced by long-term investments in the area.

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Florian Martin

Florian Martin

Business Reporter

Florian Martin is currently the News 88.7 business reporter.Florian’s stories can frequently be heard on other public radio stations throughout Texas and on NPR nationwide. Some of them have earned him awards from Texas AP Broadcasters and the Houston Press Club.Florian is a native of Germany. His studies in Leipzig...

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