Through August, 255,000 rentable sf of subleased space along thesoutheast market has been taken off the market either throughleasing efforts or lease expirations, according to the team'slatest market update report. The team of Mitch Bradley, SergioCastaneda, John Marold, Brett Nathan and Brian Kunkel now expectsthe sublease market along the corridor to decline by another350,000 sf by the end of the year. In other words, 610,00 sf ofsubleased space will have disappeared by year-end, almost cuttingin half the amount on the space clogging the market, if no newsublease space is added.

Next year, four subleases for a total of 205,297 sf will expire,even if the space isn't leased. And in 2006, there are 14 subleasespaces for a total of 249,233 sf returning as direct space.

So who is taking the leased space off the hands off companies?Oil and gas/mining and software companies are the two biggestindustries, equally splitting 36% of the activity. The only otherindustry taking more than 10% of the space is telecommunications,accounting for 15% of the activity. Business services, financialservices and health care each account for 9% of the activity.Engineering is taking 6% of the space, as does the "all other"category of companies. Computers and hardware companies account for3% of the sublease action.