The office sublease market has continued to thin, with vacancy declining for a third consecutive quarter and edging down to 3% of existing sublease inventory, JLL said in its Q2 2024 Market Dynamics report. Office sublease vacancy fell to 144 million square feet.
"Higher-quality subleases have attracted new tenants quickly," JLL added. "More than 75% of the subleases signed in the second quarter were listed in 2023 or 2024, despite comprising roughly 40% of all sublease availability."
Sublease absorptions reached their highest level since the pandemic with 5.8 million square feet of subleases signed, while the level of new sublease inventory coming on the market has dropped by a third compared to the first half of 2023.
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