Southern California Industrial Sublease Rises

As the industrial market continues to normalize, tenants are shedding underutilized space. CBRE’s national industrial sublease brief saw sublease availability more than double from June 2022, yet still represented less than 1% of the total industrial inventory. The Inland Empire market was the top market for available sublease blocks of 300,000 sq. ft. and above at 5.9 million sq. ft. as of September 2023.

The context of industrial sublease space, however, is important. The increase in industrial sublease space seen in the past six quarters does not necessarily equate to falling market conditions. While economic uncertainty remains, there are other factors to consider.