NAI Sublease Index Climbs in March

Sonoco Logistics has placed 86,000 square feet of sublease office space – its total lease – on the Houston metro’s market. That action caused the NAI Partners Sublease Index to increase by 10 basis points to 15.6% in March 2018. The tenant had occupied Lake Pointe Plaza in Sugar Land.

Oil and gas company Halcon Resources also boosted the sublease total by adding 52,000 square feet at 1000 Louisiana St. Meanwhile, a contract for 47,958 square feet of subleased space was signed for 5444 Westheimer Rd., bringing the total amount of sublease space available to 9.3 million square feet.

Perhaps unsurprisingly, the extra space is pushing down lease rates. The average gross asking rate for sublease space in Class A buildings is $17.77 per square foot. This represents a 53.6% drop in the price since Q3 2014.

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