Reader SOAPBOX: Colliers Adds Context to Sublease Stats

BOSTON-Dear Editor:

On July 23, an article was posted on the Globest.com titled Boston’s Downtown Sublease Space Jumps 651%. The article was based on a Colliers International mid-year survey of 15 major downtown markets, which focused on the issue of sublease space. We at Spaulding and Slye Colliers would like to clarify and put into proper context and perspective the statistics released.

At year-end 2000, available office space was almost nonexistent in Boston, and tenants were marketing only 180,115 sf of sublease space, a mere 0.3% of the 51.8-million-sf office market. At mid-year 2001, available sublease space totaled 1.5 million sf. The dramatic percentage increase in sublease space is the result of the low base number and is therefore misleading. Sublease space still represents only 2.9% of the 52.6-million-sf downtown Boston market, not a worrisome level for investors. In fact, at mid-year, Boston recorded lower sublease availability as a percentage of total inventory than several other major downtown markets surveyed by Colliers including Seattle (5.2%), Los Angeles (4.9%), San Francisco (4.7%), and Midtown South, Manhattan (4.1%). In terms of overall vacancy (defined in Colliers’ mid-year survey as both sublease and direct vacant space), Boston ranks among the tightest markets in the nation at 6.1%.