Houston office market rated at top of 'sell' list

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Property auction house Ten-X has listed Houston as the country's No. 1 "sell" market for office real estate, calling this region a "risky bet" for investors in a new report on the U.S. office sector.

"A slight increase in oil prices has failed to translate to a rebound for Houston's floundering economy, as energy sector payrolls are down 22 percent from their prior peak and the overall unemployment rate has risen to 5.1 percent," California-based Ten-X said in a statement.

Office building vacancy, which has been on the rise since the end of 2014, reached 20.3 percent at the end of last year, according to data from commercial real estate firm JLL. The vacancy rate is expected to remain high in 2017 as 3.5 million square feet of new space is under construction as energy tenants have consolidated.

Cleveland, suburban Maryland, Memphis and Milwaukee rounded out the top Ten-X "sell markets."

The top markets were where investors should considering buying property are Portland, Oakland, Palm Beach, Orange County and Miami. In those regions, job growth is fueling demand for office space.

RELATED: Report: Houston has some of the priciest office space in U.S.