Through August, 255,000 rentable sf of subleased space along the southeast market has been taken off the market either through leasing efforts or lease expirations, according to the team's latest market update report. The team of Mitch Bradley, Sergio Castaneda, John Marold, Brett Nathan and Brian Kunkel now expects the sublease market along the corridor to decline by another 350,000 sf by the end of the year. In other words, 610,00 sf of subleased space will have disappeared by year-end, almost cutting in half the amount on the space clogging the market, if no new sublease space is added.
Next year, four subleases for a total of 205,297 sf will expire, even if the space isn't leased. And in 2006, there are 14 sublease spaces for a total of 249,233 sf returning as direct space.
So who is taking the leased space off the hands off companies? Oil and gas/mining and software companies are the two biggest industries, equally splitting 36% of the activity. The only other industry taking more than 10% of the space is telecommunications, accounting for 15% of the activity. Business services, financial services and health care each account for 9% of the activity. Engineering is taking 6% of the space, as does the "all other" category of companies. Computers and hardware companies account for 3% of the sublease action.
Continue Reading for Free
Register and gain access to:
- 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
© 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.