Houston’s office market is beginning to show measurable signs of improvement, but the recovery remains highly selective. After reversing its 2024 losses, the market recorded 2.44 million square feet of 12-month net absorption while vacancy eased from its recent peak, positioning Houston among the major U.S. markets demonstrating renewed momentum. That momentum, however, is not being shared equally across the market. Tenants continue to prioritize higher-quality buildings, efficient layouts, stronger amenities, and locations that support…
THE LEE LENS – POWER, PEOPLE, POLICY: THE NEW DRIVERS OF INDUSTRIAL SITE SELECTION
Commercial real estate is at a critical juncture, shaped by shifting market conditions, evolving global trade policies, and tighter financing constraints. In this challenging environment, strategic incentives such as tax abatements, infrastructure support, workforce development grants, and targeted federal programs have become indispensable tools for companies evaluating expansion, relocation, or facility development. Across North America, tenant growth remains cautious, driven largely by tariff uncertainties and persistently high interest rates. Lee & Associates’ Q3 Industrial Market…
THE LEE LENS – What Higher for Longer Really Means for CRE Investment in 2025
Elevated borrowing costs are reshaping commercial real estate investment nationwide, and Houston is no exception. However, the region enters this environment with resilient market fundamentals, supported by steady tenant demand, disciplined development, Port Houston activity, and a diverse economic base. Even so, capital has become more selective, placing greater emphasis on durable cash flow, asset quality, strong locations, and operational performance. In this edition of The Lee Lens, we examine how the higher-for-longer interest rate…
THE LEE LENS – STICKY BUT SHIFTING: INSIDE THE CAP RATE RECALIBRATION
After nearly two years of elevated interest rates and shifting market conditions, commercial real estate investors find themselves at an unusual juncture. Despite clear increases in borrowing costs and economic uncertainty, cap rates remain surprisingly sticky. At the heart of this dynamic is a fundamental disconnect between sellers holding tight to earlier valuation benchmarks and buyers recalibrating for heightened risk. The result is a cautious, fragmented market—one defined less by distress than by recalibration. Nationwide,…