Tech Influence is an Economic Revolution

Buyer Nitya Capital plans to upgrade Norfolk Tower and rebrand it as Nitya Tower (credit: Jud Haggard).

HOUSTON—Energy employment increased 1% year over year, but has yet to translate to recovery in the commercial property market, according to a recent report by JLL. Still, the office market offers relief and opportunity for tenants.

Specifically, 28.7% of the office space is occupied by energy tenants. The low oil price environment is increasing vacancy and resulting in record levels of sublease space. Also, energy leasing activity is up significantly from 2016 and 1.8 million square feet of sublease space will expire within 12 months, so total vacancy is expected to increase. As an example, midstream companies were largely unaffected by the downturn. These companies are capitalizing on the sublease space brought to market by upstream companies.