Sublease space as percentage of total shrinks. The amount of sublease space as a percentage of the total amount of available space decreased to 16.8%, compared to 17.8% at this time last month. The total amount of available sublease space stands at 10.1 million sq. ft.
Price for sublease space down. The average gross rental rate for sublease space is at $20.73 per sq. ft., down $6.30 or 23.3% since the oil downturn began to manifest in the office market Q3 2014.
NRG Energy seals the deal. The energy company is subleasing 431,037 sq. ft. from Shell Oil Co. at One Shell Plaza—910 Louisiana in downtown Houston. NRG will occupy 18 floors within the 50-story, 1.1 million sq. ft. high-rise in the Houston CBD. This transaction marks the city’s largest sublease deal since the oil slump began more than two years ago, with a term through Dec. 31, 2025, when Shell Oil Co.’s lease expires.
Leta Wauson | Director of Research
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