Heritage Plaza Lands 165k SF Sublease
Noble Energy and CBRE have combined to take a sizable bite out of Downtown's sublease market. Despite market conditions, Noble leased 165k SF to five subtenants at 1111 Bagby. With so much space on the market (~2.5M SF in Downtown alone), competition for deals is fierce.
CBRE EVP Lucian Bukowski, first VP Kevin Kushner and senior associate Wyatt McCulloch repped Noble Energy in negotiating five separate subleases to account for the space. Together they've transacted 285k SF of subleases across Houston in 2016. They broke down how they're making sure deals get done.
“To be successful in a market like this, quality inventory/space needs to be priced appropriately. By coupling this with a willingness to subdivide larger spaces and being responsive, you can net a rewarding outcome,” Lucian said.
Another key factor was Noble's decisiveness. Kevin said, “Noble was responsive and decisive," which helped the team maintain momentum on transactions.
Wyatt thinks that "by building momentum on these smaller successes, we were able to land a larger subtenant to acquire the remaining space."
Their work is fighting against a rising tide of sublease space. Large blocks still remain throughout the city, like the 800k SF at One Shell. Outside of Houston's CBD, areas like the Energy Corridor are being particularly hard-hit by the sublease market.
