US Industrial Sublease Listings Jump to Highest Level Since 2010
Just as the Federal Reserve has raised interest rates, industrial sublease availability has also seen substantial growth.
So far in the second quarter of 2023, total US industrial space listed for sublease has risen by 28 million square feet, "the largest quarterly increase in sublease availability CoStar has recorded since it began tracking sublease listings across all U.S. markets in 2007."
The buildings joining the sublease market are primarily class A, "newly built and high-quality [industrial] buildings." E-commerce companies, such as Amazon and Chewy, are just some of the businesses listing their spaces in the sublease market. This trend usually follows larger economic cycles and reflects how businesses are looking at their real estate footprint across the board.
Seven out of the top 10 cities with sublease availability are on the West Coast, with five in California alone.
Original Publication Credit: Costar
Image Credit: Turbo Squid