- As businesses continue to transition from the impact of the COVID-19 pandemic, there has been an increase in sublet space available in the market. In Q3, 592,897 square feet of space was available for sublease in the market. This is a 4.7%increase from the 566,419 square feet of available sublet space in the market at the close of Q1. 42% of those sublet spaces are for spaces fewer than 5,000 square feet, with an additional 24% between 5,000 and 10,000 square feet. Overall, sublease availability remains substantially less than other markets.
- Tenant requirement volume for Q3 totaled 1,600,000 square feet, down 33.9%quarter-over-quarter. Contributing to this decrease is a record 642,100 square feet of product that closed over the quarter, but also a record 653,800 square feet of demand that was dropped. CoStar Group’s $20 million purchase at 600 Tredegar St and planned build-to-suit fulfilled their 400,000 square foot requirement, contributing to the decrease. After months of mulling over how to proceed during these unpredictable times, tenants are starting to make decisions. Those companies which have shifted their workplace strategies already are committing to decisions, but others are considering short-term renewals, or holding off until the economy stabilizes, and their future needs are clearer.