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| Houston Market News |
| Apartment- Vacancy increased in the Houston apartment market, but rents posted quarterly gains. Reis reports first quarter vacancy at 9.3%, up from 8.8% one quarter earlier. Reis reports average asking and effective rents of $747 and $692 per month, up 1.2% and 1.0%, respectively, over the quarter. |
| Office-Houston's office vacancy rate remains high, as is often the case with this market, but rents showed solid first quarter growth. Reis reports first quarter vacancy for general purpose, multi-tenant office space at 11.7%. up 30 basis points from year-end. Reis reports average asking and effective rents of $22.94 psf and $19.89 psf, up 3.3% and 3.5%, respectively, over the quarter. |
| Retail-Vacancy remains high in the Houston retail market, and rents finished 2007 with minimal gains and showed only slight improvement in the first quarter of 2008, when asking and effective rents rose 0.7% and 0.1%, to $15.85 psf and $14.00 psf, respectively. Reis reports vacancy for community/neighborhood shopping center space at 12.3% in the first quarter, up 20 basis points from year-end. |
| Industrial-The Houston industrial real estate market began 2008 with a low-key rental posture. Reis reports average asking and effective rents of $3.95 psf and $3.85 psf at the beginning of the year for non-manufacturing, warehouse/distribution space, following a year of much stronger annual gains. Vacancy was actually down 60 basis points from one year earlier, at 8.3%. |
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