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."
Several leases were signed for sublease space along north MoPac Boulevard. "Buildings that are well situated and well designed continue to attract good tenants, especially at the lease discount rates that are coming out," Buls says.
Advertised rates are down $2 per sf to $3 per sf, he says. "What that means for really good tenants is that's as much as a $5 to $6 discount once the lease is negotiated," he says. "Probably a 25% discount. That's significant from last year."
There are still major spaces not included in the report because they haven't been released. They include the Jones, Lang, LaSalle lease of 108,000 sf for Sun Microsystems Inc. and Solectron's 240,000 sf.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
