"Across the city, asking rates remained flat this quarter, with Houston’s overall gross rate holding steady (all classes) around $23.00 sq. ft. Examining Class A gross rental rates, the citywide average held at nearly $32.00 sq. ft., although the Katy Freeway and West Loop/Galleria increased almost $2.00 sq. ft. to $28.00 sq. ft. and $32.00 sq. ft., respectively. CBD rates held at $40.00 sq. ft. with no office buildings set to deliver until 2010.
"Overall gross rental rates remained flat, including Class A rates with the exception of the Katy Freeway and West Loop/Galleria submarkets where rates increased by $2.00 sq. ft. due to higher asking rates in new buildings and higher occupancy rates, respectively. Projects slated for delivery in 2009, particularly in West Houston (Energy Corridor, Katy Freeway and Westchase) are quoting higher Class A gross rates despite the current economic environment. The Katy Freeway submarket will deliver product with asking rates from $27.00-$38.00 sq. ft. Westchase has future projects with rates ranging from $32.50-$34.00 sq. ft. while the Energy Corridor has future deliveries with rates ranging from $31-$36.00 sq. ft.
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