Sublease space falls below 10 million sq. ft. The amount of sublease space as a percentage of the total amount of available space decreased to 15.4%, compared to 16.8% at this time last month. The amount of available sublease space stands at 9.2 million sq. ft., or 4.0%, and available direct space at 51.9 million sq. ft., or 22.5% of total inventory as of the end of October.
Price for sublease space in newer office buildings tumbles. The average gross rental rate for sublease space in Class A buildings built in 2014 or newer is at $24.17 per sq. ft., down $14.10 or 36.8% since the oil downturn began to manifest in the office market in Q3 2014.
Sublease Transactions. During October, the major move-ins include 35,327 sq. ft. of sublease space taken by Costello Engineering in CityWest Place; 26,742 sq. ft. occupied at Wortham Green.; and 25,295 sq. ft. of sublease space absorbed at Research Forest Lakeside. The major move-outs involve Cooper Cameron Valves vacating 100,337 sq. ft. of space at the Reserve at Westchase.; 23,398 sq. ft. left in Westchase Park Plaza; and 21,342 sq. ft. emptied at 3 Waterway Square Place.
Director of Research
tel 713 275 9618