Industrial Houston industrial real estate is holding up well, as vacancy has finally begun to climb down from the double-digit range. Reis reports vacancy for non-manufacturing, warehouse/distribution space at 9.7% at the beginning of 2006, down from 10.9% one year earlier. Asking and effective rents began 2006 at $3.78 psf and $3.69 psf respectively, both up 2.2% over the year.

Retail Vacancy remains high in the Houston retail market. Reis reports third quarter vacancy for community/neighborhood retail space at 11.2%, up 30 basis points over the year. Reis reports average asking and effective rents of $15.41 psf and $13.79 psf, up 1.0% and 0.6%, respectively, over the quarter.

Office Vacancy in the Houston office market remains high. Reis reports third quarter vacancy for general purpose, multi-tenant office space at 15.1%, down 40 basis points over the quarter. Reis reports average asking and effective rents of $19.05 psf and $16.04 psf, up 2.3% and 2.8%, respectively, over the quarter.

Multi-Family Vacancy increased in the Houston apartment market in 2006, but rents managed to post gains. Reis reports fourth quarter vacancy at 7.1%, up from 6.3% one quarter earlier and 6.2% over the year. Reis reports average asking and effective rents of $715 and $662 per month, up 2.0% and 3.0%, respectively, over the year after modest quarterly gains.