Search
 

Some Rents Drop 40% in 3.3 Mil-SF Sublease Market

AUSTIN-Top-of-the-line tenants are big winners as Austin's sublease space reaches Mount Everest heights. Market watcher Mike Buls says another 84,000 sf came to market in the last two weeks, pushing the total to a whopping 3.3 million sf.

By Tim Green | Updated on January 31, 2002

AUSTIN-As the amount of available sublease continues to creep up, rents, especially for big spaces, are falling. Mike Buls, an Austin broker who compiles a sublease report, says rates, in some cases, have dropped 40% in the past two weeks to juice leasing activity.

It’s particularly true of public companies such as Vignette Corp., which has more than 200,000 sf on the market, and Charles Schwab, which has 316,000 sf, Buls tells GlobeSt.com. “They would like to be able to plug in some number that would work in the current time frame that would take some of that burden of paying rent on that vacant space out,” he says.

In some cases, companies seeking to rent their sublease space are offering full-service leases at rates slightly higher than a triple-net lease, Buls says. “And I would say that a AAA-credit tenant can probably do something in the order of 20% less than those quoted rates,” he adds.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.