HOUSTON – The Energy Corridor of West Houston leads the nation in the supply of sublease office space, according to a JLL report comparing the supply of excess space in American submarkets.
JLL reports over 3 million SF of excess office space is available for sublease in the Energy Corridor, where oil and gas companies have laid off thousands of employees and even declined to finish-out and occupy new buildings that were constructed for them in the boom times.
In the national study, downtown Houston ranks No. 2, followed by Houston’s Westchase and Chicago’s West Loop. New York’s Financial District ranks 10th in sublease supply.
JLL reports Houston has 12 million SF of sublease space available.
Transwestern recently reported the Houston office market has experienced a 118 percent increase since the first quarter of 2015.
The surge in sublease space supply – Houston office market has 11.2 million SF of sublease space currently on the market – has developed as energy firm have shed excess office space. In a recent sublease move downtown, Freeport McMoran put 475,000 SF on the market, including 335,000 SF in the 717 Texas tower and 119,000 SF in Pennzoil Place.
Shell Oil recently announced it was evacuating from downtown Houston, including the One Shell Plaza, a landmark tower where the oil company had its offices since 1971.
Sept. 28, 2016 Realty News Report Copyright 2016
You failed to mention that as a result of vacating their downtown building, Shell will be moving 3,400 employees to their buildings in The Energy Corridor.
Energy Corridor leads the nation in sublease office space, among the rankings of submarkets, according to JLL.