Supply of Sublease Space Up 61 Percent in Houston Due to Fall in Oil Prices

HOUSTON – With shrinkage in the energy industry, the Houston office market has 61 percent more sublease space today than it did a year ago, according to NAI Partners of Houston.

The sublease space is concentrated primarily in West Houston, which includes the Energy Corridor, Westchase and the Katy area.

Houston has 7.7 million square feet of sublease space available in Class A and B combined, double the historic average of 3.3 million square feet.

The west Houston office market is being squeezed as energy companies shed employees. Other sublease space has appeared because companies have moved into new office buildings, leaving vacant space behind, said Dan Boyles, a partner of NAI Partners.