At a time when most office markets are seeing significant rent increases due to high demand from office space users, Houston’s office market has experienced its first negative absorption quarter in five years, and leasing activity has dropped significantly, down almost 36 percent from the first quarter and 67.5 percent since 2014...
the energy companies in Houston put their expansions on hold, and began offering the new space for sublease. The second quarter ended with 7.4 million sq. ft. of sublease space available, almost double the 4 million sq. ft. available a year ago, according to a second quarter report from real estate services firm Savills Studley. For example, ExxonMobile is offering almost 200,000 sq. ft. of sublease space at Eight Greenspoint Plaza, ConocoPhillips has 207,000 sq. ft. available at Two Westlake Park and Phillips 66 has 211,000 sq. ft. ready for sublease at Pinnacle Westchase...How Low Oil Prices Hurt Houston Office Landlords
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National Office Sector Report (Q1 2015)