It is an opportunistic time to be an occupier. Market fundamentals continue to shift in the tenant’s favor. Landlords acknowledge we are in a down cycle, and now is the time to get creative and negotiate previously unavailable lease concessions. Notable available concessions include turnkey buildouts, furnishings, flexible lease options, convertible tenant improvement allowances, and short-term direct deals.
Current direct vacancy (15.8%) is twice as high as it was 2 years ago. Direct and Sublease Availability (28.7%) remains significantly elevated, providing more negotiating power for tenants. As subleases continue to expire, expect direct vacancy to continue increasing. Asking rents continue to decline, recording an average of $79.23 per square foot compared to average pre-pandemic rates of $91.01 per square foot.
Current direct vacancy (15.8%) is twice as high as it was 2 years ago. Direct and Sublease Availability (28.7%) remains significantly elevated, providing more negotiating power for tenants. As subleases continue to expire, expect direct vacancy to continue increasing. Asking rents continue to decline, recording an average of $79.23 per square foot compared to average pre-pandemic rates of $91.01 per square foot.