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Waltham Deal Stirs Office Sublease Talk

WALTHAM, MA-Two technology companies strike a 14,000-sf agreement at Hobbs Brook Office Park.

By Joe Clements | Updated on January 23, 2008

WALTHAM, MA-The sublease of nearly 14,000 sf here has resolved space issues for two companies, but some say the transaction between Incipient Inc. and BuyZone.com could also portend a trend. After being “off the radar screen” last year, sublease activity appears to be returning, according to suburban specialist James Elcock of Meredith & Grew.

“Going forward in 2008 and 2009, I think you are going to see subleasing becoming more prevalent,” Elcock tells GlobeSt.com. While the EVP does not anticipate anything close to the “chaotic” results that occurred after 2001 when millions of sf of sublease space cascaded into the mix following the technology sector bust, Elcock says a slowing economy and cost-cutting measures will require firms to take a hard look at how to make fallow quarters fiscally useful. “Subleasing really is a byproduct of the company business plan,” Elcock says. “It makes sense for a lot of reasons.”

M&G will address the sublease matter in greater depth at its annual market overview next Thursday, says Elcock, who will be among those from the Boston real estate services firm on hand to assess the state of the industry as 2008 kicks into gear. In the meantime, other observers say they are witnessing examples of increased subleasing in select instances, with battered areas such as the home mortgage field seeming especially vulnerable over the near term. DTZ FHO Partners broker Sean Teague says he has not witnessed any up tick of subleasing in the south suburban market that he covers, but predicts some firms will ultimately take that route. “It’s not a question of if, but when,” he tells GlobeSt.com.

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