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Old Posted Oct 5, 2019, 2:31 AM
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TexasPlaya TexasPlaya is offline
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Big Prediction: By The End Of The Year, Downtown's Sublease Glut Will Be Gone

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Sublease space, long plaguing the Downtown Houston office sector, is in line for some serious absorption, according to the discussion at Bisnow’s Future of Downtown event.

“One thing that's not known yet, we’re working on documents which will definitely help the actual market but also the psychology behind it,” Cushman & Wakefield Executive Vice Chairman Tim Relyea said. “All the sublease hangover that we've been working on, One Shell, BG Group Place, Hess. We’re working on documents on almost all of that. So by the end of the year, all the sublease hangover is going to be gone. So that will be a major plus for downtown and be very helpful.”

Combined, those three assignments represent an estimated 1.3M SF of sublease space. Individually, they are some of the largest available blocks. Total sublease space for the entire Houston market sits at 9.1M SF, the majority of which is in the Class-A market with 7.5M SF available, according to Transwestern. With Downtown responsible for 2.3M SF of that sublease space total, completing deals on those spaces could have an outsized effect, reducing Downtown’s sublease availability by over 56%.

Exactly who the tenants are and other details related to the deals can’t be confirmed until the deals close....
Good news if most of those deals come to fruition. Hopefully they aren't a bunch of WeWork and their copy cats...
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