Space taken off the sublease report includes space that's been leased or taken back by building owners through a sublease buyout or use for other building occupants. If the space has been recaptured, but not leased it moves to a direct lease vacancy. Buls has compiled the report since February. The peak, so far, was 2.941 million sf on the sublease market, reached at the beginning of July.
Buls says the sublease market appears to be stabilizing, but it's too early too make that call because large blocks of space from Dell Computer Corp. and Solectron Inc. hang over the market. "It's a definite feeling of stability, but it's too soon to say it's an absolute trend," Buls tells GlobeSt.com.
He says there seems to be an upswing in activity, which may indicate that potential tenants think that rates have gotten low enough to get back in the market. Buls has noticed it himself with a couple of listings he represents. "May and June things were completely dead and most of July," he says. "Then suddenly, it was like the faucet was turned on and I've been showing those things routinely and I've gotten lots of calls."
While the northwest area has the highest amount of vacant spaces, it also has had the most leasing, Buls says, which indicates it's a desirable area. A problem, however, is that much of the space comes in large chunks. "There's a real shortage in the northwest of smaller spaces," he says. "It's like the number of people that want a big house. There are fewer people that want big houses and a lot more people that want smaller houses. So the larger houses take longer to market and to sell and the smaller houses, there's more demand for those.
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