Sublease is on the rise. Before the pandemic tossed the whole world a curveball, the amount of sublease space - both listed as available and sitting empty - was very minimal in Los Angeles. Since the pandemic, that number has ballooned exponentially. As of Q1 2023, available sublease space has increased by 190% and currently makes up 17% of available space in the market. Vacant sublease space now makes up nearly 11% of total vacant office space in LA.
Here’s an overview of the key trends we’re seeing. To take a closer look, download the report or reach out to us for more information.
- Sublease on the Rise: The gulf between direct and sublease space has widened considerably.
- Rents Begin to Plateau: Asking rents continued to climb during the pandemic, but not anymore…
- Flight to Quality: Demand for amenity-rich space has made Class A office a hot commodity.
- Who is Still Leasing New Space? A handful of tenant categories have been extremely active amid the pandemic.
- Who is Staying Put? Not everyone is giving up on in-person work.