Sublet inventory remains abundant and competes with prime space for tenants looking for space at a significant discount to the direct market. The majority of available sublet inventory remains high-quality space that was placed on the market as a result of mergers, the continued flight to quality and the continued shift to “doing more with less” due to the hybrid workplace environment.
- Sublease space makes up 3% of total available space in DC. Class A sublet space makes up 77% of all the available sublet inventory while Class B accounts for 22% of all the sublet inventory.
- Vacant sublease space in the DC market continues to trend upwards with over 1.2 MSF vacant space available. Vacant sublease space makes up 5.4% of total vacant space in DC.
- The largest sublease available on the market is the United Healthcare block at 655 New York Ave, NW, with 191,018 SF in the East End. East End continues to hold the most available sublease space among the submarkets, making up 42% of all available sublease inventory. The core submarkets- CBD and East End- total nearly 74% of all sublets available on the market.
- In the second quarter of 2023, asking rents for subleases were $44.80. Sublease rents are on average $10 cheaper than direct asking rents.
- Sublease activity comprised of 45,710 SF, nearly 5%, of all new lease activity in the second quarter of 2023.
- JAF Communications signed the largest sublease of the second quarter inking 23,494 SF at 1111 19th St, NW and taking some of Blackboard’s old office space off the sublet market.