March 31, 2017
Austin’s available office sublease space totaled 1.3 million square feet in Q1 2017. Overall sublease availability increased from 1.9% to 2.7% of the total office market from Q3 2016-Q1 2017, according to a recent CBRE MarketFlash report.
The reasons? CBRE’s research department noted that contraction is the number-one reason for subleasing, with 435,000 square feet of the sublease space attributed to tenants leasing more than what is needed because of consolidation, downsizing, or market exits. Other reasons for sublet space include expansion, and growth control.
As such, “only two-thirds of the largest sublease listings currently available in Austin align with the more conventional idea that an occupier just simply has too much space for current employee headcount,” the report noted. Technology firms located in the Northwest, Southwest and CBD submarkets had unloaded the majority of sublease space, the report went on to say.
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