Houston’s Class A Office Market: NAI Partners: Sublease Space Supply Up 63 Percent

Nat Holland, NAI Partners

In Houston, The downturn in the energy business has pushed the supply of sublease office space to more than 8 million SF, more than twice the historic average, as stated by NAI Partners.

Houston’s supply of Class A sublease space is up 63 percent increase since the end of 2014, as stated by Dr. Nat Holland, chief research and data scientist of NAI Partners. With layoffs and business contraction, a number of energy firms have placed large blocks of unneeded office space on the sublease market in recent months. NAI reports that 45 percent of the city’s sublease space is concentrated in West Houston, where the Energy Corridor is located. Technip SA, the French oilfield services firm, just placed 100,000 SF of its space up for sublease in the new Energy Tower IV, as stated by the Wall Street Journal. This week the newspaper told the nation about Houston’s sublease issues with an article titled: “Vacant Office Spaces Pile Up in Houston; Companies Look to Unload Workspaces with Local Economy Hit by Drop in Oil Prices.” Jan. 28, 2016