Colliers: Houston office sublease space soars to 9.2M SFColliers: Houston office sublease space soars to 9.2M SFhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=129142016-04-19T05:00:00Z2016-04-20T21:20:00Z

​​HOUSTON - Houston is home to most major energy companies and its economy and real estate market can be positively or negatively affected by the price of oil, according to Colliers International.

Houston’s 1Q2016 office market continues to struggle due to the low price of oil, but it appears to be faring better than expected in a $40 per barrel economy.

Houston’s city-wide vacancy rate remained unchanged at 15.3 percent over the quarter, however the annual rate rose significantly, increasing by 220 basis points from 13.1 percent in 1Q2015.

The increase in the amount of sublease space placed on the market during 2015 was a major factor. Houston’s available sublease space more than doubled between 4Q2014 and 4Q2015, increasing from 3.8 million sf to 8.0 million sf, but only increased to 9.2 million sf in 1Q2016.

Only 1.4 million sf of new inventory delivered during 1Q2016 and 100 percent of this space is pre-leased. Houston’s office construction pipeline is shrinking and currently totals 6.3 million sf of which 50 percent is pre-leased. 

The majority of the new space is located in suburban submarkets and is scheduled to deliver over the next 12 months.

Colliers International
Houston-The Woodlands-Sugar Land
https://assets.recenter.tamu.edu/Documents/MktResearch/Houston_Colliers_Office.pdfSource: {Source}

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