CBRE: Record subleases bring availability to a 20-year high in HoustonCBRE: Record subleases bring availability to a 20-year high in Houstonhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=140572016-08-03T05:00:00Z2016-08-03T20:10:00Z

​​​​HOUSTON - Sublease space in Houston surpassed 10.2 million sf pushing availability (direct and sublease) to a 20-year high of 19.8 percent. 

In order to return to the 20-year average availability of 15.8 percent, the Houston office market will need to absorb 8.4 million sf, which could take three to five years. ​

Close to 1 million sf of additional sublease is expected to hit the market next quarter; combine that with vacancy from new construction and availability could exceed 21 percent in 2017.

How did Houston’s strong growth and robust office market end up in its current predicament? 

It’s all about timing. 

Five years of strong job growth, especially in the energy sector, sparked a new construction cycle. 

This resulted in the creation of more than 26 million sf of office space, which is the equivalent of ten Empire State Buildings. 

Construction is down to 4.2 million sf, at 51.4 percent preleased and new starts are virtually nonexistent. 

While demand has slowed, new construction with high-end amenities is still popular among occupiers. 

When leasing activity picks up, these properties will likely be in high demand. ​

Houston-The Woodlands-Sugar Land

​​See Houston Office Marketview 2Q 2016 (full PDF)​.

Also check out Houston Office Market Research​.

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