Subletting is becoming increasingly relevant

Strong growth in the past and future

The supply of office space for sublease recorded an increase of almost 4% in the first quarter of 2022 (CBRE, 2022). This follows a slight decline in the amount of office space in the second half of 2021. The main reason for this was primarily the favorable economic situation at the time.

All in all, the supply of sublease space has changed significantly over the past few years. In the United States alone, supply has increased by 80% within a single year. In addition, a future annual growth rate (year-over-year) of 60% is forecast. The reasons for this increase in availability are manifold and range from staff reductions and lower growth expectations to an increase in remote and hybrid working arrangements.

When is subletting office space a good option

There are a variety of reasons why a company or private individuals should rent out unused space in their office. The following two are the most common: not all of the office space is needed, or the office space is too small.

What are the benefits of subletting

Here too, there are a multitude of advantages that cannot be adapted to every situation. Nevertheless, it is likely that the following two benefits will apply in any situation: Subletting excess office space helps to cover part of the liabilities, and subletting can help a company correctly size its real estate portfolio.