The economy is beginning to open-up as vaccinations increase, and companies are setting firmer targets for workers to return to the office. During the second half of 2021, expect most companies to have workers back in the office at least part-time. As this plays out, companies will begin to have a clearer picture of how much space they will need over the next few years.
The total amount of sublease space has now surpassed both the levels recorded during the Great Financial Crisis (GFC) and the Dot-Com Recession (DCR). Across the U.S. and Canada, sublease space accounted for 2.4% of total office inventory, up from 1.2% at the end of 2019. That is above the GFC (1.8% of inventory) but remains below the DCR (2.9%).
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.