Sept. 27, 2016
Houston’s Katy Freeway West, CBD and Westchase office submarkets each have more sublease space than any other U.S. submarket, according to a recent report by JLL Research that examined subleases of greater than 50,000 square feet in Boston, Chicago, Los Angeles, New York, San Francisco, Seattle, Washington, DC and Houston. The findings paint a picture of the vast scope of Houston’s office sublease supply.
Sublease space from energy tenants in Houston not only comprises the majority of sublease space in the city, but the overwhelming majority of sublease inventory nationwide as well. A phenomena seen almost exclusively by the Houston office market, sublease space from the energy industry exceeds 7.4 million square feet. In fact, sublease space attributable to Houston’s energy companies would still have double the amount of sublease space of any other city in the U.S. In contrast, the next highest industry in terms of sublease space is technology, which is responsible for 1.9 million square feet. Other industries such as professional services and insurance come in at just over one million square feet each.
The result is that Houston’s energy submarkets have the highest rates of sublease space of any submarkets in the U.S. Houston’s Katy Freeway West, CBD and Westchase come in at the top three spots for submarkets with the most sublease space.
Houston’s Katy Freeway West office submarket takes the top spot and is home to 2.6 million square feet of sublease space. Factor in subleases of less than 50,000 square feet and that number exceeds 3 million square feet. Chicago’s West Loop office submarket has the most office sublease space outside of Houston, but pales in comparison with 823,199 square feet. New York’s Financial District rounds out the top ten office submarkets for sublease space with 418,169 square feet.
Houston’s total office sublease inventory currently tops 11.9 million square feet. With approximately 587,000 square feet of additional sublease space coming to the market every month, Houston could see 13 million square feet of sublease space by year end.
Click here to view JLL’s most recent Houston Office Sublease Report.