Office Subleases Surge Nearly 12%

Office subleases in Los Angeles have surged. A new report from NAI Capital shows the office subleases are up 7.6% for the quarter and 11.5% year-over-year. The report also showed that this space is being absorbed at a slower rate. In the first quarter, there were 390,460 square feet of subleases completed, which is a 22% drop from this time a year ago. The increase in office subleases will give new tenants and tenants with expiring leases leverage in negotiating rental rates, especially for tenants who can take a shorter lease term. To find out how the increase in subleases is affecting the office market and a forecast for the remainder of the year, we sat down with Forrest Blake, a VP at NAI Capital, for an exclusive interview.

GlobeSt.com: Why is it important to track office subleases?