December 12, 2016
Houston’s office sublease inventory shrank during Q3 2016, according to local real estate market reports. The improvement is partly the result of ConocoPhillips’ announced move into space it previously had available for sublease, which took a 22-story office building off the market.
However, with office tenants attempting to unload 11.6 million square feet of office space (three times the historic average of 3.3 million square feet), it will still take a long time to work through the inventory, according to JLL’s Steve Burkett. “It’s a possibility for more space to come on the market. There are still people in bankruptcy, or having issues that may be giving back their space,” Burkett told the Houston Chronicle.
The CBD and Energy Corridor submarkets combined take up close to half the available sublease space, while energy companies account for all the 20 largest subleases.
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