April 13, 2016
2016 continues a record pace in terms of sublease space in Houston’s office market. Continued downsizing and M&A activity by energy firms in 2016 will likely add additional space to the market, pushing the total amount of sublease space closer to 10 million square feet by year end. The impact of oil price concerns and job losses continue to cause pullbacks in the market. The effects were seen in the office sales sector, where there was a marked shift in size and class toward smaller Class B buildings. The market and tenants remain cautious in light of the uncertain oil and gas environment. Leasing activity overall remained below 2 million square feet during the quarter, with only 11 leases greater than 20,000 square feet executed and minimal activity among new tenants to the market. Many in the market await the answer to the question: Has the Houston market reached bottom?
Click on the links below to view the full Houston office market reports and statistics for Q1 2016.