INCREASING SUBLEASE SPACE CREATES LEVERAGE FOR TENANTS | Forrest Blake * Los Angeles Commercial Real Estate

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INCREASING SUBLEASE SPACE CREATES LEVERAGE FOR TENANTS

June 19th, 2017

Presented by: Forrest Blake | Senior Vice President | SVN Commercial | 310-850-2381 | Lic # 01054174

Los Angeles, CA, Tuesday, June 13, 2017– According to NAI Capital’s Market Trends report, office space offered for sublease in Los Angeles County in the first quarter of 2017 registered 4.9 million square feet, up 7.6% over the quarter and 11.5% over the prior year. The total inventory of available sublease space is increasing and is being absorbed at a lower rate. This quarter, 390,460 square feet were subleased, which is 22.1% less than a year ago.

Sublease rents remained flat over the quarter – an indication that the mounting sublease space on the market is holding rents steady – trending lower as sublessors lower their rents in order to attract tenants.

According to Forrest Blake, “As sublease vacancy goes up, tenants who don’t mind a shorter term will have the leverage to negotiate asking rates down substantially. The gap between direct and sublease asking rents are widening.”

Forrest Blake | Senior Vice President

SVN | Commercial – DTLA

800 South Figueroa Street, Suite 925, Los Angeles, CA 90017

Phone 213.618.4196 | Mobile 310.850.2381

forrest.blake@svn.com | www.svn.com

CalDRE# 01054174

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Forrest Blake | Senior Vice President

SVN | Commercial - DTLA

800 South Figueroa Street, Suite 925, Los Angeles, CA 90017

Phone 213.618.4196 | Mobile 310.850.2381

forrest.blake@svn.com | www.svn.com

CalDRE# 01054174

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