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A new report from Cushman & Wakefield has found that sublease office space is skyrocketing as the office market struggles to stay afloat during the pandemic.
In the first three quarters of 2020, office sublease has increased by 52% in the U.S., totaling around 95 million square feet.
Some cities saw sublease space more than double, such as San Francisco by 488%, Nashville by 211%, Seattle by 182%, Pittsburgh by 174% and more.
Currently, Manhattan has the most sublease space of any market with 16.1 million square feet, that of which accounted for 4% of its office inventory.
However, some markets did see sublease fall during the third quarter of 2020, most significantly Phoenix by -0.8 million square feet and Houston by -0.9 million square feet.
Additionally, the report revealed diminishing demand to take up office space in major downtown areas as dense cities have become largely avoided over the last several months.
Despite the growing concerns over the massive amounts of sublease space, the report noted that these numbers have stayed below the record peak during the recession in the early 2000s.
“Sublease space in markets that historically have had limited space and high costs may be attractive to expanding occupiers returning to the office if/when the pandemic begins to subside,” they report said.
