Office Market Update Moderator: Gil Staley-The Woodlands Area Economic
Development Speakers: Robert Cromwell-Moody Rambin; Stephanie Burritt-Gensler; Ryan Barbles-Stream Realty Partners

Takeaway: The pandemic layered more pain on the office market in Houston, following as it did the slump in oil prices and the resulting employee layoffs. The flight to the suburbs from the CBD and indecision regarding co-working space has further muddled the picture and has added to landlord anxiety.

• Houston leads the country in office vacancy rate; hopefully, this year will see a bottoming out and a slow return to absorption
• There is a flight to newness, as most Houston office product was built in the ‘80s to serve that boom in oil
• The CBD and Energy Corridor have suffered the highest vacancy rates, with Uptown Houston also feeling pressure; employees working from home are enjoying freedom from long commutes; elevator and park and drive anxiety has driven the work from home phenomenon mini-boutique spaces in the suburbs as well
• There is a new term spawned by remote working: FOMO, or “fear of missing out” on what is happening within the company; collaboration is a big part of forming resilient company cultures and it is much weaker when working via Zoom
• Landlords are considering increasing ventilation even as Covid fades, but there is only so much humid air one can bring in from the outside in Houston
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