COMMERCIAL DATA: Office rents drop in Cy-Fair, retail rents hold steady to close out 2020

Vacancy rates have risen year-over-year in Cy-Fair across office, industrial and retail industries, according to data as of Dec. 18 provided by Caldwell Cos. to Community Impact Newspaper. The largest increase in vacancy was seen in the industrial sector, where nearly four million square feet in new space opened this past year. Retail vacancy increased from 5.3% at the end of last year to 6% in December.

Annual rental rates fell for office space in the fourth quarter of 2020, with the triple net direct rate per square foot hitting $18.68 as of Dec. 18, down from $19.25 in the third quarter. Office rents in Cy-Fair have been relatively flat over the past two years after surpassing $19 in the second quarter of 2018. Meanwhile, the retail sector—where occupancy has remained the most steady—saw rental rates rise in the fourth quarter to $23.46 per square foot. That rate is up slightly from $23.31 per square foot in the third quarter and up from $22.66 at the end of 2019.

The industrial sector saw the most growth in Cy-Fair between the fourth quarter of 2019 and December 2020 with roughly 3.8 million square feet of new space opening. Industrial space in Cy-Fair now sits at 39 million total square feet. By comparison, The Woodlands area has about 4.61 million square feet of industrial space while the Tomball and Magnolia areas have about 4.26 million square feet.

By Shawn Arrajj
Shawn Arrajj serves as the editor of the Cy-Fair edition of Community Impact Newspaper where he covers the Cy-Fair and Jersey Village communities. He mainly writes about development, transportation and issues in Harris County.