BiggerPockets Daily How Houston's Boom & Bust Cycle Has Left a Lasting Impact on Its Real Estate
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Aug 8, 2025 Houston's commercial real estate market is facing a crisis with office vacancies soaring to 28%. The decline is fueled by energy sector consolidation and shifts to remote work. As oil companies trim jobs and office space, outdated buildings are left empty. The podcast explores challenges like rising insurance costs and the impact of city development patterns. It highlights the unique absence of zoning laws in shaping Houston's real estate dynamics, alongside the need for revitalization efforts in the wake of economic fluctuations.
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Houston Faces Massive Office Vacancies
- Houston's office vacancy hit 27.9% driven by energy consolidation and workplace changes.
- The market now ranks second only to San Francisco for empty offices.
Big Oil Mergers Left Towers Empty
- Over $450 billion in oil and gas deals since 2023 led firms to shed workers and offices.
- ConocoPhillips and others are selling or vacating recent headquarters buildings.
TC Energy Center's Steep Value Drop
- The TC Energy Center fell from over $400M to $284M in five years and occupancy is 65%.
- Owners are converting the banking hall but the long-term future remains uncertain.