Page 20 - DEC2022

buildings is a driving force that intends to entice
Historic Comparison employees to return to the workplace and enhance

one's recruiting and retention.
21Q3 22Q2 22Q3
Spec suites remain popular with tenants who do
Total Inventory 235,349.5 237,612.4 237,652.4 not want to deal with a protracted build-out process
(in Thousands of SF) and realize they don’t have the luxury of the long
New Supply 640.4 57.6 97.6 lead time associated with fully custom spaces. As a
(in Thousands of SF) result, we expect landlords to continue the strategy
of building spec suites for smaller tenants (typically
Net Absorption (162.8) ( 115.5) (409.2)
(in Thousands of SF) under 5,000 square feet) to enhance their leasing
efforts. However, another trend we see is landlords
Overall Vacancy 22.4% 23.1% 23.3% are not as open to offering ultra-short-term leases,
forcing tenants to accept longer terms, but packaged
Under with generous concessions.
Construction 2,660.31 ,903.22 ,053.6
(in Thousands of SF) To attract and retain current tenants, Class A land-
lords are offering higher tenant improvement pack-
Overall Asking
Lease Rates (NNN) $20.53 $20.96 $20.93 ages, reducing the upfront, out-of-pocket costs to the
tenant, thus lowering net effective costs. This trend will
likely continue, resulting in Class B products struggling
to compete with Class A spending allotment. N

Pat is the managing director of brokerage services in
Houston for Colliers. Pat has more than 37 years of
experience in commercial real estate as a producing
broker, educator, sales manager, and managing
broker. Mr. Duffy can be reached at patrick.duffy@
colliers.com.
Lisa joined Colliers in 2010 as Director of Market
Research and has 37 years of commercial real estate
experience. Lisa initiates proactive market research
projects to further the business goals of the company.
Lisa can be reached at lisa.bridges@colliers.com.

Mr. Gowell joined Colliers in 2015 as a Senior
Associate in the Office Tenant Representation Group,
where he focuses on business development, lease
negotiations, and transaction management. Darren
can be reached at darren.gowell@colliers.com.

20 NBIZ ■ December 2022