U.S. Sublease Office Space Soars in Third Quarter, to Near 2009 Peak
There have been large blocks of office space added to the market in the third quarter in office hubs around the nation.
December 17, 2020 | Patricia Kirk | National Real Estate Investor
Driven by a combination of continued remote working, workforce reduction and economic uncertainty, it’s not surprising that 80 percent of markets tracked by real estate services firm Transwestern have reported an increase in sublet office space in recent months.
“Nationally, the sublease availability rate is 0.9 percent or 163 million sq. ft., as of third quarter 2020, which is comparable to the 0.8 percent (of total available inventory) or at 137 million sq. ft. reached during the 2009 recession,” notes Elizabeth Norton, senior managing director of research services with Transwestern.
It’s no secret that energy-related companies and law firms are marketing large amounts of sublet space and negotiating with landlords to give back space or downsize during lease renewals, as both industries have significantly downsized staff.
