“It’s still a very vibrant area. There’s so much development out that way and so many rooftops, so you’re seeing positive absorption there — all along the Katy Freeway.”
The Energy Corridor
In Houston’s corporate oil and gas hub, industry consolidation has for years reduced some of the demand for office space.
The Energy Corridor ended the year with a 24.3% total vacancy rate, Avison Young said. But like The Woodlands, the Energy Corridor posted positive office absorption at the end of 2022.
The Energy Corridor improvement district recently launched a branding campaign called “Redefining Energy” to help attract companies along the spectrum of the energy sector.
Plans for the area include investments in public art, infrastructure and mobility and “gateways” to help create a better sense of place for the geographically sprawling district.
Companies here were some of the first to formalize return-to-work plans. BP, for example, told its employees more than a year ago that it would implement a hybrid work policy: three days in the office and two at home.
And in a recent sign of strength for the area, Midway, the developer of CityCentre and East River, announced plans to transform the former ConocoPhillips office campus into a mixed-use complex with high-end retail, a luxury hotel, apartments and offices.
“It’s still a very vibrant area,” Stephens said. “There’s so much development out that way and so many rooftops, so you’re seeing positive absorption there — all along the Katy Freeway.”
