Sublet leasing activity considerably lower than a year ago

1. Research &
Forecast Report
HOUSTON
Q2 2018 | Office Sublease
Houston’s office market is making some progress in reducing
the amount of sublease space that was placed on the market
in the height of the energy crisis. Although sublease space has
decreased over the past few years, additional blocks of sublease
space recently placed on the market have curtailed the downward
momentum in 2018. The majority of individual blocks of sublease
space currently on the market have 1-3 years of term remaining;
however, there are still some large blocks of space with 5+ years
of remaining term.
Vacancy and Availability
>> Q2 2018 sublease vacancy rate is 2.5%
Q2 2018 total available sublease rate is 4.3%
Rental Rate
Houston’s average gross sublease rental rate is $22.80 per SF
Houston’s average net sublease rental rate is $14.67 per SF
Net Absorption
Q2 2018 sublease net absorption is 914,668 SF and when
combined with the negative net absorption from Q1 2018 the
2018 year-to-date net absorption total is 326,078 SF
Leasing Activity
Sublet leasing activity dropped 28.4% over the quarter from
372,803 SF to 266,863 SF
Sublet leasing activity considerably lower
than a year ago
Relative to prior period Q2 2018 Y-O-Y
*VACANCY RATE
*AVAILABILITY RATE
RENTAL RATE
NET ABSORPTION
Ten Largest Sublease Availabilities – Q2 2018
Large Sublease Availabilities
(Total available in building and/or complex)
BUILDING TENANT SUBMARKET SF
5 Greenway Plaza Oxy Greenway Plaza 807,567
Four WestLake Park BP Katy Freeway 479,483
Energy Tower II KTI Corporation
(Technip)
Katy Freeway 375,937
NRG Tower Reliant Energy Retail CBD 262,325
One Shell Plaza Shell Oil CBD 245,785
Three WestLake Park Phillips 66 Katy Freeway 221,723
1100 Louisiana Enbridge CBD 202,680
10777 Clay Rd AMEC Foster Wheeler Katy Freeway 189,285
Energy Center I Foster Wheeler Katy Freeway 182,966
Westway III GE Oil Gas West Belt 182,004
Most of the sublease space is concentrated in the CBD and West
Houston submarkets
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
CBD Galleria/West
Loop
Katy Freeway Greenway Plaza Westchase
Available Sublease Space by Select Submarket
*An explanation of Vacancy vs. Available space can be
found on the bottom of page 4 of this report.
Market
Indicators
Lisa Bridges Director of Market Research | Houston

2. 22 Sublease Report | Q2 2018 | Houston Office | Colliers International2
Current cycle available sublet space increased slightly in Q2 2018
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
CBD Suburban Houston Total
Sublease leasing activity decreased marginally over the quarter
Sublease Leasing Activity
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Current Available Sublease Space
Although there are 99 full floors with 5-10 years of term remaining, 69 of those floors are located in 3 large contiguous blocks of space
BY NUMBER OF FULL FLOORS
11
32
84
37
5-10 years, 99
25
-
20
40
60
80
100
120
0-6 months 6-12 months 1-3 years 3-5 years 5-10 years 10 years +
Available Sublease Space

3. 3 North American Research Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
Colliers International | Market
000 Address, Suite #
000 Address, Suite #
+1 000 000 0000
colliers.com/market
3 North American Research Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2018 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
Colliers International | Houston
1233 West Loop South, Suite 900
Houston, Texas 77027
+1 713 222 2111
colliers.com/houston
FOR MORE INFORMATION
Lisa Bridges
Director of Market Research | Houston
+1 713 830 2125
lisa.bridges@colliers.com
Available Space
The amount of space being
marketed for sale or lease to a
user. It includes both occupied
and physically empty space.
Vacant Space
This is the amount of square
feet that is physically empty,
regardless of whether it is
being marketed.
AVAILABLE VS. VACANT
396,309 CBD
251,670 ALLEN PARKWAY
221,723 BELLAIRE
182,966 E FORT BEND SUGAR LAND
113,759 GALLERIA/WEST LOOP
96,144 GREENWAY PLAZA
70,889 KATY FREEWAY
75,033 NORTH BELT/GREENSPOINT
74,540 S MAIN/MEDICAL CENTER
67,334 THE WOODLANDS
63,212 210,157 WEST BELT
53,258 111,176 WESTCHASE
51,968 107,466
50,691 82,471 801,990
45,802 54,774 504,327
41,407 51,941 320,349
40,730 42,364 124,698
26,133 32,962 102,192
26,074 31,673 77,624
25,580 31,350 66,217
25,104 28,515 66,156
24,192 28,065 45,639
22,844 27,748 38,674
22,473 25,879 26,772
21,555 25,104 25,012 194,996
253,562 20,923 25,012 24,897 143,000
113,741 198,256 18,822 24,192 22,982 123,041
40,452 151,372 18,425 22,229 21,763 46,720
31,563 93,785 17,519 20,234 20,575 26,417
24,657 72,325 16,689 19,908 20,226 26,400
21,791 67,606 16,211 19,491 20,073 25,272
20,633 58,408 15,879 18,463 19,130 21,588
0-6 Months 6-12 Months 1-3 Years 3-5 Years 5-10 Years 10 + Years
CURRENT FULL FLOOR BLOCKS BY REMAINING TERM AND SUBMARKET