When the markets are performing well, subletting plays a rather minor role and is something of a peripheral issue. However, in times of crisis, it becomes far more frequently discussed and can even become a hot topic.

The reasons for this are self-evident. In periods of economic difficulty, the growth prospects of companies become unclear and they may even be forced to reduce their personnel. In this current crisis, there is one additional relevant factor. Office work is often being carried out at home, leaving office space frequently deserted. This is resulting in falling demand for office space at least in the short term. Meanwhile, the number of offices being offered to sublet is rising and has multiplied in the top six markets since the outbreak of the pandemic in March 2020. According to the latest figures, there were more than 350 offices available to sublet with a total area of approximately 300,000 sq m. In Berlin alone, 51,400 sq m of space has been sublet over the last year, equating to 6.5% of overall take-up. This compares with a typical range of 1% to 2.5% over the last 10 years.

Companies offering space to sublet are seeking to reduce unnecessary costs for temporarily vacant space. Firstly, however, it is essential to clarify how suitable the space is for subletting. The use of common areas and sanitary facilities and issues surrounding access routes and fire protection are some examples of factors that must be considered. Potential occupiers are generally offered the opportunity to use fully fitted-out space with all the benefits of a traditional office combined with flexible and relatively short lease terms at a moderate cost. Sublettings can also be beneficial to both parties. Those seeking the right space can either turn to traditional agents or an increasing number of providers with specialised search portals.

Even if demand for office space is lower overall in times of crisis, sublettings can provide a valuable alternative for companies. Particularly at the moment, when the world of office work is in a state of transformation, subletting offers occupiers greater flexibility. The increased proportion of sublettings in Berlin bears testimony to their importance in times of economic difficulty. However, subletting will remain a niche segment both in times of crisis and when markets are booming.