Increasing Inventory of Available Office Sublease Space Creates Leverage for Tenants to Negotiate Lower Rents According to NAI Capital’s Market Trends Sublease Report
Los Angeles, CA, Tuesday, June 13, 2017– According to NAI Capital’s Market Trends report, office space offered for sublease in Los Angeles County in the first quarter of 2017 registered 4.9 million square feet, up 7.6% over the quarter and 11.5% over the prior year. The total inventory of available sublease space is increasing and is being absorbed at a lower rate. This quarter, 390,460 square feet were subleased, which is 22.1% less than a year ago.
Sublease rents remained flat over the quarter – an indication that the mounting sublease space on the market is holding rents steady – trending lower as sublessors lower their rents in order to attract tenants.
According to Forrest Blake, Vice President, with NAI Capital’s Tenant Consulting Group , “As sublease vacancy goes up, tenants who don’t mind a shorter term will have leverage to negotiate asking rates down substantially. The gap between direct and sublease asking rents are widening.”
To access the full Los Angeles Office Market Trends Sublease Report, visit:
About NAI Capital
NAI Capital is the largest independently owned full service commercial real estate firm headquartered in Southern California. As one of the largest members of NAI Global, the premier managed commercial real estate service network with 400 Offices and 7,000 market leaders spanning the globe, NAI Capital provides a complete range of transaction, valuation, investment, property management and consulting services. By leveraging our local expertise with our global reach, NAI Capital offers innovative, customized solutions and seamless service to owners, tenants, investors and developers throughout Southern California. NAI Capital clients have built their businesses on the power of our expanding network. We are a dynamic growing commercial real estate company. At NAI Capital we work together putting our clients first.
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To learn more, visit www.naicapital.com
About NAI Global
Founded in 1978, NAI Global is a leading global commercial real estate brokerage firm. NAI Global Offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 Offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing in excess of over 425 million square feet of property. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world.
NAI Global provides a complete range of corporate and institutional real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services.
To learn more, visit www.naiglobal.com.
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