In the wake of the global economic and health disruption, occupiers remain cautious with major real estate decisions. This has continued to mean less overall leasing, more renewals, shorter terms (when possible), and strategic subleasing consideration of excess space. Though vaccines are being rolled out, there continues to be uncertainty primarily due to health concerns stalling long-term decisions by occupiers.
Across the 83 North American markets tracked by Cushman & Wakefield, office sublease space increased by 80 percent during 2020. However, the rate of increase did slow in the fourth quarter compared to the third.
In this sublease update through Q4 2020, we once again analyze the following:
- Where unneeded space is being shed
- How sublease space compares with past peaks
- How markets across the U.S., Canada and Mexico are stacking up
- How sublease space looks in the CBD vs. non-CBD markets