In a year where Sublease office inventory peaked to 4.3 million square feet*, brokers at RCR kept their heads down and transacted over 10 Subleases for their Clients (the Triangle Class A, B & C office market totals approximately 61 million square feet*). These Subleases ranged from 2,660 SF to 31,845 SF, and RCR advised both Subtenants and Sublandlords in all areas of the Triangle.
Subleases can be attractive to Tenants as the majority require less Lease term than a direct deal with a Landlord and the spaces can be move-in ready. With the pandemic and remote work, many updated spaces were underutilized and very lightly used. Given the construction and permitting challenges since the onset of the pandemic, Subleases were also viewed as a safer and more reliable transaction, from a timing and cost perspective.
What will 2024 look like? I personally think the Sublease office inventory will continue to decrease, however, the Sublease spaces that do not transact will return to the Landlord thus increasing the direct overall vacancy rate (currently 14.5%*). I think smaller Sublease listings that are in very good shape and have no more than five years of term remaining will mostly transact, especially if located within close proximity to amenities. The larger spaces will continue to sit as new activity on that scale continues to remain nonexistent.
Interested in Subleasing a space or marketing your space for Sublease? Check out RCR’s current Sublease inventory and/or reach out for a complimentary space analysis.
*4Q 2023 Triangle Business Journal’s Space Quarterly
