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NAI Partners Sublease Index decreases to 15.2%
The NAI Partners Sublease Index—measured by the amount of sublease space as a percentage of total available space—decreased 10 basis points to 15.2% near the end of July. Space being marketed for sublease represents 9.3 million sq. ft. of the 61.6 million-sq.-ft. total availability figure.
Kiewit Engineering subleased 52,834 sq. ft. from BASF at Energy Tower IV at 11750 Katy Freeway in Houston’s Energy Corridor—the submarket with the largest amount of available sublease space, at approximately 2.2 million sq. ft. The CBD is a close second, at 2.1 million sq. ft.
Class A sublease space represented 20.8%, or 7.7 million sq. ft. of the 37.2 million sq. ft. of total Class A available space, and Class B sublease space accounted for 7.3%, or 1.6 million sq. ft. of the 21.9 million sq. ft. of total Class B available space. In addition, Class A buildings built in 2014, the year the oil downturn began to manifest in the office market, through the present, signified 10.7%, or 623,000 sq. ft. of the 5.8 million sq. ft. of total space available.
Director of Research
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