Houstonomics

Houston Office Market Q2 Update: Leasing slowed to 2.2M SF (-23% QoQ), with H1 activity down ~20% YoY. Yet positive net absorption of 425K SF shows resilience. Flight-to-quality in action: A assets captured 66% of leasing & most gains.

@CoyDavidsonCRE Healthcare real estate is not slowing. It is getting more selective. The winners will be outpatient facilities that lower costs, improve access and support higher-value care. Buildings that cannot prove operational value will struggle to attract capital.

Healthcare real estate is shifting away from bigger hospitals. Capital is pouring into outpatient facilities, ambulatory centers, and medical office buildings near patients. Access, affordability, and convenience are now key competitive advantages. knowledge-leader.colliers.com/shawn-janus/mi…

Friday Market Recap Stocks Mixed Friday but S&P 500 Posts Solid Weekly Gain - S&P 500: +0.42% to 7,575.39 (up over 1% for the week) - Nasdaq: +0.29% to 26,281.61 (up over 1% weekly) - Dow: +0.29% (149 pts) to 52,637.01 (down 0.5% weekly)

U.S. oil and gas producers increased the active rig count for a fourth consecutive week, adding one rig to reach 581. Oil drilling activity was unchanged at 445 rigs, while natural gas rigs held steady at 126. The total rig count is up 44 rigs, or 8% YoY

Wall Street isn't losing. It's gaining competition. New York remains the financial capital, but Dallas and Miami are capturing new investment, talent and headquarters. The Texas Stock Exchange, Citadel's move to Miami and billion-dollar office projects show finance is becoming a multi-city ecosystem.

U.S. Office Demand Keeps Climbing. Q2 2026 absorption hit 16.9M SF, 7 straight quarters of occupancy gains. The stat that matters most: nearly 3 out of 4 U.S. office markets posted positive absorption at midyear 2026.

THURSDAY MARKET RECAP Markets push higher despite U.S.-Iran tensions. 🟩 Nasdaq Composite: +1.30% to 26,206.89 🟩 S&P 500: +0.81% to 7,543.64 🟩 Dow Jones: +139.02 pts (+0.27%) to 52,487.41

AI driving office demand: The lease underscores how artificial intelligence companies have become a major source of demand for premium office space in gateway markets, particularly New York and San Francisco.

Existing-home sales fell 2.4% in June to a seasonally adjusted annual rate of 4.09 million homes. Home prices reached a record high. The median existing-home price climbed to $440,600. Inventory stands at 4.6 months of supply.

Mortgage Rates Hover in Mid-Six Percent Range The average 30-year fixed-rate mortgage increased slightly to 6.49%, up from 6.43% the previous week but below 6.72% one year ago. The 15-year fixed-rate mortgage rose to 5.82%, compared with 5.79% last week and 5.86% a year earlier.

Initial jobless claims: 215,000, down 2,000 from the prior week's revised level of 217,000. Four-week moving average: 218,750, down 3,750. Continuing claims (insured unemployment): 1.814 million, up 8,000 from the previous week. Insured unemployment rate: Held steady at 1.2%

Retail demand is stronger than many expected. U.S. retail absorbed 10.2 million square feet in Q2 while vacancy held at just 4.4%. The bigger story is supply. Limited construction is giving well located shopping centers real pricing power. Tight supply is doing the heavy lifting.

Mitsubishi Corporation (Americas) has signed a 91,761-square-foot lease at 1100 Louisiana in downtown Houston. 🔗hcre.short.gy/nx3LUk

Houston's housing market is becoming more balanced, not weaker. Inventory has a 5.2 month supply, giving buyers more leverage. Yet single family sales still rose 3.5% and the average home price reached a record $455,159. 🔗 hcre.short.gy/4Yx33e

The biggest AI problem isn't employee adoption. It's organizational inertia. 70% of employees say they're ready to use AI. Only 27% of leaders believe their organizations are ready to change around it. Buying AI tools is easy. Redesigning how work gets done is the competitive advantage. mckinsey.com/capabilities/p…

@CoyDavidsonCRE Miami, New York, Charlotte, San Francisco, Dallas, and Houston are outperforming because finance, AI, and professional services continue to lease space.

Mortgage Applications Dip in Latest MBA Survey • Total applications fell 2.2% w/w (seasonally adjusted). • Refinance index dropped 4% w/w, but still running +8% vs year-ago levels. • Purchase applications slipped just 1% w/w (SA). On unadjusted basis, they’re +5% YoY.