U.S. Office Sublease Inventory Declines for Third Consecutive Quarter
U.S. office sublease inventory declined for the third straight quarter and is now 7.6% below its peak in the second quarter of 2021, according to Cushman & Wakefield. At 122.4 million square feet, available sublease space currently represents 2.2% of total U.S. office inventory.
Improvement in Q1 2022 was widespread, with quarter-over-quarter drops in 42 of 89 of tracked U.S. markets. The markets with the largest declines year-over-year included San Francisco (2.7 million square feet), Boston (1.7 million), Greater Seattle (1.7 million) and San Mateo County (901,891).
“The decreasing amount of sublease space on the market is a good sign that the office market is recovering,” said David C. Smith, Cushman & Wakefield’s head of global occupier insights. “The current trajectory matches the path of previous recessions. After increasing for seven quarters starting in late 2019, sublease availability has begun to steadily recede.”
- ◦Lease
