In the latest updates from the office sector, Houston witnessed a notable increase in population and job opportunities. However, despite this growth, the performance of the office market in the first quarter of 2024 didn't reflect significant vigor. According to Lee & Associates, the vacancy rate experienced a slight uptick due to the introduction of new inventory, alongside a decline in both net absorption and rental rates. The pace of construction projects has moderated, and given the prevailing conditions in capital markets, this trend is expected to persist, thereby enhancing the overall outlook for the office market. There's a notable preference among tenants for newer office spaces, necessitating landlords with older properties to enhance their competitiveness through capital investments. During the quarter, the vacancy rate stood at 21.5%, with rents averaging $30.43 per square foot.

Conversely, the industrial sector exhibited a more optimistic outlook in Houston during the first quarter of 2024. Rent prices, leasing activities, net absorption, and the delivery of new industrial properties and upcoming projects all demonstrated growth.

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