NAI: Houston’s improving office market amid subleases

​​​​HOUSTON – TechnipFMCA has placed a major block of Energy Corridor office space on the sublease market. 

The 275,000-sf space is located in the Energy Tower II building at 11720 Katy Fwy. near Kirkwood. 

Even though the sizable sublease is a set-back, overall, the Houston office market has been improving. 

The sublease supply surged to more than 12 million sf in 2016, following a precipitous drop in oil prices. 

After hitting the peak of 12 million sf, the sublease supply has declined to 8.8 million in February 2018, NAI Partners reports​. 

Over 1 million sf of sublease deals were completed in 4Q 2017. 

During 4Q 2017, the Houston office market had positive absorption, following a long string of losses as the city’s vacancy rate climbed.