JLL 2Q 2016 office reports ‘sub’lease space rising in Houston

Much of the sublease glut is attributed to energy sector companies.​

The hyper-supply of sublease space is creating opportunities for tenants searching for high quality space with favorable terms.​​​

Although much of the 3.1 million sf of new construction delivered thus far in 2016 was preleased, over 1.0 million sf was delivered without preleasing commitments.

Despite 44.2 million sf of office space available for lease—which comes out to 26.6 percent of all existing and under construction space—Houston failed to surpass 1.5 million sf of total leasing activity for the first time in the last 15 years.

For total availability to stabilize below 20.0 percent again, leasing activity would need to increase to 2.9 million sf for each of the next four quarters.