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prime example of Houston's office market struggles has hit the market: the 21-story building at 801 Travis Street. Listed by an affiliate of Dallas-based Lincoln Property Company and marketed by JLL, this central business district property is only 43% occupied. It's being touted as a value-add investment opportunity due to its low occupancy rate.

    The building has been half vacant for years, with Maryland-based KCI Technologies departing in October after occupying 15,000 square feet. As of July, the property had a loan balance of $24 million, but a recent appraisal valued it at just $19.9 million - less than $90 per square foot and roughly half its 2013 value of $43 million.

    The property's loan has been on servicer watchlists since 2016, and after maturing in November last year, a receiver was appointed. The owner has been trying to boost occupancy while the building remains on the market. Built in 1981 and renovated in 2014, it last changed hands in 2015 when Lincoln acquired it for a pension fund client.

    Houston's office market is struggling, with an overall vacancy rate of 24.9%, largely due to low occupancy in older buildings like this one. However, the recent drop in interest rates may provide distressed property owners with more exit options.