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National Backlog of Office Sublease Space Begins Easing
Office space offered for sublease in the top 53 U.S. markets registered its first monthly decline in August since the onset of the pandemic, CBRE reported. Sublease space totaled 160 million square feet in these markets, down 1.5% from July.
“This is a good sign for the office market and the economy in general, though it still will require a lot of activity and time to materially reduce the large volume of sublease space that has been put on the market during the pandemic,” said Julie Whelan, CBRE global head of occupier research. “Other indicators – like new lease signings – have been improving in recent months. But the improvement of the overall office market should really gain traction after the sublease backlog has been pared meaningfully.”
Sublease space still represents roughly 3.6% of all office space in the 53 markets that CBRE tracks. That figure was 2.1% prior to the pandemic.
- ◦Lease
