CBRE: Double take of Houston’s sharp rise in industrial sublease space

​HOUSTON – Houston’s industrial market continues to weather the effects of low oil prices with positive growth.

Demand is strong, particularly in the Southeast submarket, and the flexibility offered in leasing terms and space use has been instrumental in preserving the market’s strength.

Tenants and landlords in Houston’s industrial market have responded to the changing economic environment via two trends: increases in shorter-term leases and an increased availability of sublease space. ​

Sublease space availability was a defining trend this quarter. Compared to a year ago, total industrial sublease availability surged over 1.6 million sf to 3.5 million sf—the largest amount on record and well above the five-year average of 2.4 million sf.

Although at an all-time high, current available sublease still represents only a small portion of all available space despite growing by 562,986 sf this quarter.