CBD Overtakes Energy Corridor For Most Sublease Space
The Houston CBD now has the highest concentration of sublease space in the market — and the nation.
JLL Research shows after Enbridge added 294K SF at 1100 Louisiana St. during the second quarter, the total sublease inventory in the CBD is now just over 2.5M SF, or 23% of the indirect market.
Over 430K SF of sublease space on the market expires in 2017. Those deals have little chance of leasing before their expiration and will likely push direct vacancy 0.26% higher by year-end.
The good news is that overall sublease inventory has contracted for the third consecutive quarter, landing at 11M SF. Houston's sublease space started to balloon in Q3 2014, when 4.2M SF was on the market. It peaked at 12.2M SF in Q3 2016, and has been slowly decreasing since.
