Aaron Jodka- More sublease space continues to hit the Boston market.
- Between October and November, another 700,000 SF came to the market, following an average of 900,000 SF in the previous two quarters.
- Year-to-date, more than 200 new spaces are on the market.
- TAMI companies remain the main contributors, making up half the spaces added.
- Companies such as State Street, Amazon, Verizon, and Rapid7, who signed leases for significant expansions/relocations, are the next to watch.
- MullenLowe previously put two floors of space at 2 Drydock on the sublease market. Other pre–lessors could modify space usage or put part of their buildouts on hold, which would add to the sublease market.
- Sublease space has been moving, so while it continues to hit the market, the net impact isn’t as dramatic as the aforementioned numbers may suggest.
- Recent positive news on the vaccine front has created a light at the end of the tunnel. While we aren’t through this downcycle, there is likely to be more clarity in the first half of the year on occupiers’ future plans.
Stephen Newbold
