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Despite Increase in Downtown Sublease Space, It's Still an Owners' Market

BOSTON-The recent surge in sublease space here, due mainly to the declining fortunes of high-tech companies, has not made life much easier for tenants here. Local brokers say the market is still very strong.

By Naomi Grossman | Updated on February 28, 2001

BOSTON-The recent, sudden increase in sublease space Downtown here has given onlookers the perception that the pendulum is shifting towards a tenant’s market, but according to local brokers the perception is just that: a perception.

“It is still a landlord-oriented market,” Bob Cleary, vice president at Meredith & Grew, tells GlobeSt.com. “We only have a 3% vacancy here. Until we get to a 10% or 12% vacancy, then you’ll see tenants have some bargaining power. But we’re years away from that.”

According to Cleary, this city now has about a 1.5 million sf of sublease space, with most of that coming from high-tech companies that went under in the recent downturn. The flood of sublease space to market started with Beakaway Solutions, which sublet its 100,000 sf at the Seaport Center East Office Building in South Boston. Viant Corp. has put 90,000 sf that it leased at 100 Summer St. on the market and 100,000 sf of space at 343 Congress St. in Fort Point channel here is also being sublet. The recent news that Verizon Communications is thinking of subletting up to 350,000-sf of space in its High St. location here ups the ante even further.

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