Availability levels off amid sunset days of the pandemic

With more widespread vaccination and office tenants repopulating their physical footprint, availability – which hit a 10-year high at the start of the year – stopped climbing in the second quarter, holding flat from Q1 at 26.0%. Since the first quarter of 2020, availability has surged 600 basis points (bps). A decline in sublease inventory has helped availability to level off. As tenants re-enter workplaces, Q2 closed with 5.7 million square feet (msf) of sublease space available, unchanged from Q1, after rising 16.8% through the pandemic. Demand remains tepid with just 1.0 msf leased over the quarter, however, office space tour volume has picked up which will likely lead to an increase in leasing volume later in the year.

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