Though sublease availability exhibited a slight decrease between the first and seconds quarters of 2023, sublease availability through the first half of 2023 remains elevated on a YOY basis. The second quarter 2023 ended with just over 6.1 million square feet (msf) of sublease availability, an increase of 24.1% compared to the second quarter 2022.
With recessionary concerns remaining in the forefront of the public conscious, companies continue to look for ways to tighten up their balance sheets, resulting in a portion of tenants electing to sublease their existing spaces and, in some instances, choosing not to occupy space new space they leased in previous quarters. Similar to the latter half of 2022, leasing activity among sublease product continued to cool in the first half of 2023, with 340,381 square feet in subleases signed between January and June, a 41.4% decrease compared to the second half of 2022 and a 63.9% decrease compared to the first half of 2022.
To learn more, read the first half 2023 Denver Office Sublease Report.