Wednesday , 19 September 2018
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OXY Dropping 814,000 SF Onto Sublease Market

HOUSTON – (Realty News Report) – Occidental Petroleum is expected to vacate a large amount of office space, increasing Houston’s supply of sublease office space, according to a new report from NAI Partners.

“A significant amount of the increase is due to Occidental Petroleum placing close to 814,000 sq. ft. of sublease space on the market at 5 Greenway Plaza (746,070 SF) and 3 Greenway Plaza (67,525 SF) this month. In April, Occidental Petroleum was said to be in discussions to purchase ConocoPhillips’ Energy Corridor campus, but word on a final decision has not yet been released,” according to NAI Partners’ Sublease Index report.

The sublease index—measured by the amount of sublease space as a percentage of total available space — increased 100 basis points to 15.3 percent in June.

The Houston office market has 9.3 million SF of sublease space listed on the market. This is far above historical highs of sublease space, but it is less than the peak of more than 12 million SF in 2016.

A rapid decline in oil prices, starting in 2014, created a retreat in oil industry and vacancies in office buildings in the Energy Corridor, Downtown and other Houston submarkets.

July 6, 2018 Realty News Report Copyright 2018

 

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