The WSJ, citing a study from Grubb and Ellis, reports that the amount of space on the sublease market increased by 4 million sf in the last quarter. Interestingly, rents are nonetheless continuing to rise, which might be one reason more space is going to sublease. And while some markets such as San Diego and South Florida are tanking, others remain strong (though with predictions that they will join the fold.
Great news? No, not really, unless you are a prospective tenant or subtenant, in which case you might in some markets be able to get a bargain on some space. But don't hold your breath. If you are a landlord at least rents are not plummeting. That's when you start worrying, although you have to remember that real estate is, in a word, cyclical.