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NAI Partners Sublease Index rises to 15.3%
The NAI Partners Sublease Index—measured by the amount of sublease space as a percentage of total available space—increased 100 basis points to 15.3% in June. Space being marketed for sublease now represents 9.3 million sq. ft. of the 61.2 million-sq.-ft. total availability figure. The Sublease Index has hovered between 14% and 16% since last October.
A significant amount of the increase is due to Occidental Petroleum placing close to 814,000 sq. ft. of sublease space on the market at 5 Greenway Plaza (746,070 sq. ft.) and 3 Greenway Plaza (67,525 sq. ft.) this month. In April, Occidental Petroleum was said to be in discussions to purchase ConocoPhillips’ Energy Corridor campus, but word on a final decision has not yet been released. In addition, Sheridan Production Co. listed 71,346 sq. ft. of sublease space at 9 Greenway Plaza.
The recent Dynegy-Vistra merger also added sublease space to the Houston market. After being acquired by Vistra Energy Corp., electric company Dynegy placed 62,000 sq. ft. on the 14th floor, 35,000 sq. ft. on the 15th and about 5,000 sq. ft. on the 18th floor at 601 Travis St. in the Houston Central Business District submarket.
Director of Research
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