Mike Buls, a broker, compiles the report in the middle and end of the month using figures supplied by brokers. It includes office space that is not immediately available.
A notable change is that the rate of increase in the northwest submarket slowed. It accounts for 59% -- 1.67 million sf -- of the sublease market, down from 61% in the previous two weeks.
By submarket, subleases taken were 29,000 sf in the northwest; 39,000 sf in the CBD; 38,000 sf in the southwest; 42,000 sf in the central.
Tenants have taken 506,000 sf of sublease space in the northwest submarket since February; 130,000 sf in the southwest submarket as well as 82,000 sf in the north and north central submarkets combined. The CBD has been off the pace, with just 53,000 sf filled in the past nine months.
Buls, who compiles the report, speculates that the slow pace of sublease activity in the CBD is attributable to lower demand, that tenants are less willing to negotiate on rents or they prefer direct leasing because of potential credit problems with sublessors. About 39% percent of the subleases have terms of less than 36 months and 18.4% are less than 24 months.
In the past two years or so, space was at such a premium that tenants eagerly made deals before another prospect entered the picture. Now companies looking for space have more choices, which leads to a longer decision-making time.
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.
