Overall sublease space increased from 3.669 million sf to 3.699 million sf in June, a 30,000-sf increase despite reported leases of 79,000 sf, the report says. Mikes Buls, an Austin broker, compiles the report with input from brokers every two weeks.

Compared to six months ago, rate have dropped in several areas The average advertised rate for class C space is down almost 14% from $17.70 per sf in January to $15.53 per sf. The average rate for subleases with less than 24 months remaining dropped 12% from $18.22 per sf in January to $16.35 per sf and rates for sublease spaces larger than 50,000 sf dropped 21% from $21 per sf in January to $17.39 per sf. In the CBD, full-service gross leases for less than 50,000 sf dropped 23% from $24 per sf to $19.50 per sf. Class C space dropped 61% from an advertised rate of $23 per sf in January to a current advertised rate of $14.27 per sf.

Buls reports that expense-only leases are popping up. They include expenses, brokerage commissions and tenant improvements, which are amortized over the lease as the base rate.