200 Million Square Feet Of Office Sublease Space!!
A report just out from Colliers has the I.S. office vacancy rate at 14.2%, with 45 million square feet of negative absorption during the first quarter of 2021, and a record 200,000,000 square feet of available sublease space. Ouch! “Recovery in the office market is set to lag, record levels of sublease space and negative absorption combined with pressure on rents and subdued investment market, suggest that the sector could remain challenged through this year before signs of stabilization begin to emerge and we see a full return to the office.”
Asking rental rates actually went up 1.4%, which in my opinion makes no sense whatsoever, and I know in our local markets landlords have held fairly firm on asking rents but through in a ton of tenant improvements and free rent in order to make deals. Market velocity is still way way down in many submarkets as companies begin to slowly bring employees back to the office, many in varying hybrid models.
