H
ouston's office leasing market is experiencing its lowest point in nearly a decade, with transaction volume plummeting in the third quarter. According to Bisnow, citing CBRE, net absorption fell sharply to negative 773,000 square feet, although this was partly offset by the removal of the former Marathon Oil Tower from the inventory.

    The 41-story tower at 5555 San Felipe Street is off the market as its owner, Starwood Property Trust, considers options for residential conversion or sale. Eastdil Secured is marketing the property for sale with expected offers ranging between $35 million and $82 million, a significant decline from its 2018 price of $176.5 million.

    The third-quarter drop in net absorption can be attributed to Fluor's recent move from its Sugar Land campus to the Energy Corridor, which downsized its footprint by 70 percent. However, demand remains strong for Class-A properties, with Hines' Texas Tower at 845 Texas Avenue nearly 97% leased and Fayez Sarofim & Company recently leasing 61,000 square feet in the building.

    International Workplace Group secured Houston's largest lease in the third quarter, taking over 66,000 square feet at the Jones on Main. CBRE's business intelligence director, Eli Gilbert, notes that this quarter's dip is likely a symptom of tenants' "wait-and-see" approach due to election and macroeconomic concerns rather than a sign of a new normal.