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Sublease Space Growing, But Rate Slowing

AUSTIN-The sublease office space is continuing an eight-week upward trend. The good news, says a market watcher, is that the pace has slowed. In the last two weeks, sublease space has grown by 100,000 sf instead of the 300,000-sf average of prior accountings.

By Tim Green | Updated on July 02, 2001

AUSTIN-The increase of sublease space available in Austin has slowed a bit in the past two weeks, rising just 100,000 sf. At the end of June, the city’s sublease space hit 2.94 million sf, up from 2.85 million sf two weeks prior, according to the sublease report put together by Mike Buls of Buls/Hodge Consulting. The average increase every two weeks had been 300,000 sf.

The problem in that latest report is that space with more than 25,000 sf has risen from 22 locations to 25, Buls said. These leases account for 56% of the available sublease space, up from 54% the previous two weeks and continue a trend of the past eight weeks.

“It’s a real hard thing to interpret because larger leases take longer lease-up time,” Buls tells GlobeSt.com. “People that lease large space usually look a year in advance for places to move. That space is probably going to move slower than smaller space.”

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