The 6.723 million sf of sublease space represents 20.1% of thetotal available space in the L.A. market, but nationwide, thecountry's 142 million sf of sublease space represents 24% of allavailable office space, the report says.
The amount of sublease space actually declined in the secondquarter, the report says, but that doesn't necessarily mean theoffice market is on its way to recovery. As the leases expire onleased but empty space over the next three years, that space willgo back to landlords and add to the inventory of empty spaceoffered on a direct basis.
The result, the report says, will be "a race over the next threeyears between any market recovery and the rate at which subleasespace expires and returns to the market." The researchers believethe sublease space will "delay but not reverse a marketrecovery."
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