More Bad News for Sublease Space?
Earlier this month, Brookfield EVP Paul Frazier told us that he believes sublease blocks with lots of term left will do well, but shorter term offerings will struggle. Well, we’ve got bad news—new data by Colvill shows that 61% of available sublease space has less than five years remaining. (In fairness, tenant rep NGKF executive managing director Brandi McDonald countered that short term isn’t always a problem for tenants.)
The report shows that Houston’s up to 5.4M SF of office sublease space available (only counting blocks over 20k SF). That spans 93 listings, the majority of which (54, totaling 3.6M SF) have been added since January. Class-A has been hit the hardest—sublease space now makes up 4.1% of the total Class-A market, with 4.2M SF up for sublease. The Energy Corridor West has the most raw Class-A square footage available (1.1M SF), but Greenspoint has a whopping 11% of its top tier product up for sublease. (The Class-B buildings are much more under control in Greenspoint, with only 2.7% on the sublease block.)