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Despite Challenges, Office Market Has Opportunities

HOUSTON—Although the office market has challenges due to the oil downturn, some tenants have found opportunities in the uncertainty, such as a sublease at 717 Texas Ave. in Houston’s CBD.

717 Texas The 696,228-square-foot 717 Texas building was completed in 2003.

HOUSTON—According to JLL Research, Houston’s CBD has approximately 27 million square feet of class-A office space and approximately 2.5 million square feet of sublease space. Despite additional leasing activity during the third quarter of 2016, the CBD’s total vacancy for class-A office buildings increased to 15.4%, up from 13.7% in the second quarter. The average size of sublease transactions in 2016 was approximately 6,200 square feet.

Despite the ongoing trials and tribulations facing the office market due to the oil downturn, some tenants have found opportunities in the uncertainty. Case in point being Black Falcon Energy’s 16,579-square-foot office sublease at 717 Texas Ave. in Houston’s CBD/downtown theater district.

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Lisa Brown

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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