Continued decrease in sublease availability could signal market stabilization
Sublease availability has declined for another consecutive quarter, with a reduction of 0.8 million square feet (msf) since this time last vear to 5.5 msf. However, overall availability has continued to rise, with an additional 2.4 msf added to the market over the past year. This increase is likely due to the expiration of prime leases. On a positive note, the reduction in sublease space suggests that tenants are starting to rightsize, aligning their space needs more closely with their operational requirements. This trend could indicate a move towards stabilization in the office market, as companies adjust to new workplace norms and seek to optimize their real estate footprints.