Sublease space remains below 10 million sq. ft. The amount of sublease space as a percentage of the total amount of available space decreased to 15.0%, compared to 15.4% at this time last month. The amount of available sublease space stands at 9.3 million sq. ft., or 4.1%, and available direct space at 49.9 million sq. ft., or 21.6% of total inventory as of the end of November.
Price for sublease space in newer office buildings continues to fall. The average asking gross rental rate for sublease space in Class A buildings built in 2014 or newer is at $21.60 per sq. ft., down $16.67 or 43.6% since the oil downturn became apparent in the office market in Q3 2014.
Sublease Transactions. Stewart Title Co. signed a 156,151-sq.-ft. sublease in BHP Billiton Tower at 1360 Post Oak Blvd., occupying seven floors, with a projected move-in date of June 2019. Sizable amounts of sublease space taken off the market include 113,741 sq. ft. in America Tower at 2929 Allen Parkway; and 106,904 sq. ft. occupied by Empyrean Benefit Solutions, in Pinnacle Westchase at 3010 Briarpark Drive. The major move-outs involve FMC Technologies vacating 111,176 sq. ft. of space in Beltway Lakes at 5875 N. Sam Houston Parkway W.; 89,649 sq. ft. left by Atwood Oceanics in Energy Crossing II at 15011 Katy Freeway; and 69,009 sq. ft. emptied by Chicago Bridge & Iron at 1430 Enclave Parkway.
Director of Research
tel 713 275 9618