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Sublease Space Represents Opportunity

SEATTLE, WA-Whether a tenant can get a big break on a sublease space depends a lot upon the size of the space, the credit of the prospective tenant and the financial depth of the landlord involved.

By Janet Parker | Updated on February 23, 2001

SEATTLE, WA-With a wave of subleases crashing onto the market and pushing pushing total available space in downtown toward an estimated 6%, are direct rates suffering? “Yes…and no,” says Michael Dash, a downtown office broker for Colliers International. “The first thing to remember is we’re still in a marketplace with a direct 2.5% vacancy factor,” sayd Dash. “People doing real estate transactions on daily basis, like brokers, are fine. There’s still a lot of velocity in the market place — a lot of demand.”

Dash says whether a tenant can get a big break on a sublease space depends a lot upon the size of the space, the credit of the prospective tenant and the financial depth of the landlord involved. On one hand, institutional landlords may look at their buildings that have only 2.5% vacancy and see no need to cut rates. On the other, a “mom-and-pops” may feel more pressure to fill a 50,000 sf vacancy and be willing to drop their asking rate, say 5%, for a tenant with good credit.

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