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NAI Partners Sublease Index continues its sub-10% run in 2020
The NAI Partners Houston Office Sublease Index—measured by the amount of sublease space as a percentage of total available space—registered at 9.6% as of November 30, 2020, up 50 basis points from Q3 2020 at 9.1%. The Sublease Index remained below 10% during 2020, dipping as low as 8.2% as of Q2 2020—the lowest percentage reached since the Q3 2014 oil downturn began in the office market, and a far cry from its 19.7% apex back in Q3 2016.
The total amount of all available space (space available regardless of whether it is vacant) in the Houston Office market is 67.8 million sq. ft. Available direct space represents 61.5 million sq. ft. and available sublease space represents 6.5 million sq. ft.
Houston’s office market saw sublease space decrease gradually during the first half of 2020, dipping down to 5.2 million sq. ft., before low oil and gas prices pushed by weak demand—and the economic effect from the COVID-19 pandemic—increased the amount. Of the largest office occupiers in Houston and the amount of sublease space they have listed as of the fourth quarter of 2020, many are directly tied to the energy industry—including upstream, midstream or downstream—and oilfield services firms, utilities engineering, and construction firms.
Director of Research
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