Jul
17

Good News for the Office Market

By
From a recent Grubb and Ellis report……

The inventory of available sublease space increased by a surprisingly slim 1.4 million square feet in the second quarter, by far the smallest quarterly gain since the market began to soften. In each of the prior two quarters, sublease had increased by an average of 10.2 million square feet. The trend bears watching to see if it is a one-quarter pause following panicked cost-cutting by businesses when the credit crisis worsened last fall, or if the sublease inventory is nearing a peak. In the thick of the dot-com bust early this decade, the sublease inventory soared over a span of six quarters, topping out at 146 million square feet. In the current cycle, sublease space has increased for eight consecutive quarters to its current level of 113 million square feet. If the trend continues, sublease may be less of a drag on the next recovery than it was on the last one.

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