The Houston office market’s overabundance of sublease space may have maxed out at the end of 2016 at about 11.8 million sq. ft.
So far in 2017 we are seeing a small spark of optimism as the total amount of sublease space has declined to 11.3 million sq. ft.
Class A sublease space is down 3.2%, and Class B is shining the brightest, falling 5.6% since Q4 2016.
About 80% of the available space is in Class A office buildings, which mirrors how directly the sublease glut is tied to the energy industry.
Area experts have estimated that Houston has lost about 80,000 local oil-related jobs since December 2016. However, rising oil prices and rig counts signal the worst is behind us.
Construction activity is winding down, with approximately 1.6 million sq. ft. underway.