The availability of sublease space is growing in smaller US metros, according to a new analysis from Trepp.
"From the beginning of the COVID-19 pandemic, the debate was fierce between those that believed office attendance would revert to pre-COVID levels over time and those that believed a hybrid model or permanent work-from-home would be the new normal," a report from Trepp's Manus Clancy and Stephen Buschbom write. "The final story may take years to play out, but plenty of US firms have decided they have enough data now to figure out how that plot ends. That has meant dozens of US firms putting sizable swaths of space out for sublease."
The pair note that what began as a trend limited to major "24-hour" cities, secondary and tertiary markets are now facing a glut of available sublease space.
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