A pressure relief valve opens as sublease space floods the San Francisco office market
As of February 1, 2020, JLL Research is tracking 3,227,872 square feet of available office sublease space on the market. Of that figure, 2,411,407 square feet, or 74.7%, are over 10,000 square feet.
February 10, 2020
- The average time on market of sublease availabilities over 10,000 square feet is currently four months.
- Notable additions to the sublease market this quarter included: McKesson and WeWork at One Post Street and Nektar Therapeutics at 360 Third Street.
- Sublease space now accounts for 32% of total office availability in San Francisco.
- As a result, this will stymie future rent growth as businesses are more incentivized to rent empty space at any rate.
Source: JLL Research