Despite indications in the latter half of 2021 that sublease availability had peaked mid-year and was on the decline, sublease remained on an upward trajectory throughout the balance of 2022, increasing for four consecutive quarters to end December 2022 at just over 5.9 million square feet, a nearly 40.4% increase year-over-year (YOY) increase compared to year-end 2021.
Though public health concerns related to the COVID-19 virus have largely abated, the office sector faced new headwinds in 2022 amidst rising interest rates and mounting recessionary concerns. As both tenants and landlords seek to understand the changing economic landscape, a number of tenants have once again adopted a wait-and-see approach, with some choosing to sublease their existing space as they evaluate their costs and changing space needs. Along with the rise in availability, subleasing activity experienced a cooldown in 2022, recording a year-end total of approximately 997,500 square feet in subleases signed, a 40.3% decrease compared to year-end 2021. However, subleasing activity in 2022 did outperform the 2020 year-end total by 44.2%.
To learn more, read the second half 2022 Denver Office Sublease Report.
