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Houston Office Sublease Market Commercial Real Estate Economic Data and Information - 5444 Westheimer Rd.

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Highlights

The NAI Partners Sublease Index—measured by the amount of sublease space as a percentage of total available space—decreased 60 basis points to 13.9% in September. This is the lowest the Index has measured since it was at 13.3% in Q1 2015—two quarters after the start of the oil downturn when the index registered at 9.4%.

Space currently being marketed for sublease represents 8,585,372 sq. ft., compared to this time last month at 8,955,650 sq. ft., a decrease of about 370,278 sq. ft. More significant is the 29.8% drop in sublease availability since the third quarter of 2016, when it reached its peak of 12.2 million sq. ft.

The decline has resulted from a number of sublease deals signed, including Exelon Corp. inking a 93,813-sq.-ft. deal from Kinder Morgan at 1001 Louisiana St. downtown in August, Kiewit Engineering Group inking a 52,834-sq.-ft. agreement from BASF Corp. at Energy Tower IV in June, and 47,958 sq. ft. of sublease space being taken off the market at 5444 Westheimer Rd. by Fiesta Mart LLC, near the Galleria in March. Other factors contributing to the decrease include space being returned to the landlord through lease expirations, and tenants choosing to hang on to their space and removing sublease listings.

Houston Office Sublease Market Commercial Real Estate Economic Data and Information - graph Houston Office Sublease Market Commercial Real Estate Economic Data and Information - table


Leta Wauson
Director of Research
leta.wauson@naipartners.com
tel 713 275 9618

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