SAN FRANCISCO-Sublease rents were up 8.7% year-over-year and up nearly 90% since the low point of 2009 here in San Francisco, according to recent research from JLL. According to the firm, this was fueled by tight market conditions and reduced availability.
According to JLL research manager Amber Schiada, $56.88 per square foot was the average direct office rent at year-end, which was 40% higher than the average sublease rent of $39.68 up from a delta of just 15% in 2008.
In addition, Schiada points out that 1.3 million square feet was the total amount of sublease space on the market at year-end, while total market availability stood at just over 9.1 million square feet.
Lastly, 41 months is the average sublease term, up 23% since the 2009 low. This, according to Schiada, is due to significant early relocations and the shedding of excess space.
Check out the chart below for more.