With the economy continuing to open up and as vaccinations increase, companies are setting firmer targets for workers to return to the office. Although the Delta variant has added some uncertainty with office usage stalling out in early August, occupancy still remains above any point in the first half of the year, according to Kastle Access Control System data.
For the most part, companies continue to expect employees back in the office, at least part-time, in the second half of the year. And as this plays out, companies will begin to have a clearer picture of how much space they will need over the next few years.
In the meantime, sublease space continues to be added to the market, although at a slower pace. Total North American sublease space climbed to 147 million square feet (msf) after 8.8 msf of new space came online during Q2 2021. Across 90 North American markets tracked by Cushman & Wakefield, office sublease space is up 76% year-over-year (YoY), and up 99% since the beginning of the pandemic in Q1 2020.
In this report, we discuss:
- Why North American sublease space has nearly doubled during the pandemic;
- How it compares with previous sublease peaks; and
- Where markets across North America stack up.