The amount of sublease space on the market as of May 15 was 3.74 million sf, 4,000 sf less April 30. The amount of sublease flex space stayed at 1.3 million sf.
The northwest submarket remains the biggest source of sublease space--1.86 million sf, accounting for 50% of the citywide total. The average term of sublease space in the northwest is 40 months in comparison to 37 months for all sublease spaces. The southwest submarket has about 782,000 sf of sublease space, 21% of the sublease market. The average term is 61 months.
Mike Buls, a broker who compiles the report, said that flat to increasing sublease space, combined with increasing average term is keeping downward pressure on rates. Leasing activity is slow. Indicators, he said, show that rates will continue to decline through 2002.
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