Sublet Space Continues To Weigh on Texas Office Markets

Major Texas office markets are wrestling with tenants putting more space on the market through subleases, pushing availability rates through the first quarter of 2023. Market experts cite continued uncertainty around future demand as the main source of the glut of space, as office users reconfigure their physical environments to adjust to the long-term adoption of remote work and flex scheduling that became the norm during the coronavirus pandemic. Each market possesses different drivers that affect rising sublet availability and their respective forecast for the remainder of 2023.