Brief | Creating Resilience
Subtenants Take Time Shopping in an Open Office Market
July 31, 2023 5 Minute Read
Surpassing the previous all-time high of 3.5% during the Great Financial Crisis in 2008, the sublease availability rate surged to 6.2% at the start of 2023. Tenants reneging on their lease commitment has become increasingly common; both the ubiquity of remote work and the onset of the pandemic have caused subleasing to skyrocket, ramping up again after calming in 2021.
While overall leasing volume in 2023 has been dull compared to 2022, the average time on market has remained somewhat steady, at around a year on market for subleases signed in each year. Examining the subleases on a bell curve reveals that 95% of listings spend between 301 to 492 days on market before being signed, as prospective tenants are leveraging the down market for the best deal terms.