Contact Us
News

With Major Greenway Plaza Listing, Sublease Market Increased In June

Join Cawley Partners CEO Bill Cawley, Midway CEO Jonathan Brinsden and more at the biggest Texas office event of the year!

With Major Greenway Plaza Listing, Sublease Market Increased In June
Houston office sublease inventory 2008-2018

Sublease space rose again in June, though it is still a smaller percentage of total office availability than it was at the beginning of the year.

Greenway Plaza was the main driver of the leap: Occidental Petroleum put about 814K SF on the sublease market between 5 Greenway Plaza and 3 Greenway Plaza, and Sheridan Production Co. listed 71K SF at 9 Greenway Plaza, bringing the Houston sublease office market to 9.3M SF of availabilities. 

That pushed the NAI Partners Sublease Index, which measures the amount of sublease space as a percentage of total available space, up 100 basis points to 15.3% in June. 

Dynegy's merger with Vistra also beefed up sublease availability, putting about 102K SF on the market at 601 Travis Downtown. All three companies — Occidental, Sheridan and Dynegy — are tied to energy, continuing the trend of most of Houston's sublease woes coming from that sector.

Class-A office still has the lion's share of sublease space, with 7.8M SF listed for sublease, almost 21% of total Class-A availability.