Availability rises albeit at a muted rate, aided by a decline in sublease supply
In Q1, availability continued to escalate, though not at the surging rate seen earlier in the pandemic – topping off at 21.6%. This increase over the quarter, up from 21.1% in Q4, is the smallest change in availability since the pandemic began and may indicate market conditions beginning to level off from the wave of oversupply seen in 2020. Nationally, rising availability has been bolstered by a surge in sublease supply; however, the Suburban Maryland market saw sublease space drop from 1.5 million square feet (msf) on the market to 1.4 msf – a decrease of 7.0%. As vaccination becomes widespread and organizations feel more comfortable returning to the office, many are rethinking the sublease space they listed earlier in the pandemic and planning to reoccupy the space instead.