By Robert Sammons, Regional Director – Northwest U.S. Research
One metric that tends to be a precursor to any downturn in a real estate market or the economy in general is sublease space. Is it on the way up? How much has been added to the market recently? And most importantly, what are the reasons for the increase and is it expected to climb even higher? We answer those questions in our just released Focus Report which can be accessed by clicking here.
Below I have outlined just a few key findings from this special sublease report:
- Sublease vacancy actually fell in Q4 however sublease availability (all space currently being marketed) climbed to its highest figure since Q4 2010.
- Sublease availability has continued to climb since the end of the year and is now at 1.9 million square feet.
- Two major blocks of space contributed to the recent rise – both of which may be leased soon.
- Just as the San Francisco economic expansion has been due to tech firms, so too has the majority of the increase in sublease availability.
- This increase in sublease availability may give San Francisco tenants some breathing room.
This digital publication is a new format for us – I would love to get feedback on what you think. We intend to create many more reports similar to this going forward.
Robert Sammons is a Research Director for Cushman & Wakefield. Based in San Francisco, Robert’s principal roles include working closely with the C&W research teams across the Northwest – including Northern California, Portland and Denver. Robert is author of numerous documents that delve into a wide variety of real estate and economic trends. He has been a quoted source for all manner of real estate and related economic information in many widely known media outlets across the country. Robert has 29 years of real estate experience as both an appraiser and researcher. He earned a BBA in Real Estate from The University of Georgia and an MS in Real Estate from Georgia State University. Robert is a member of the Urban Land Institute.