Subleasing Points to SF Office Space Bubble

The office space land grab in San Francisco could be peaking and ready to slow down. Bloomberg has posted an interesting discussion on the topic featuring Redfin CEO Glenn Kelman and Matt Hart of Savills Studley. The pair shared some interesting observations, notably the increase in subleasing activity, with the city leading the US in subleased space as a percentage of total vacancies. Companies have been signing longer leases and taking on more space than they may need and are using subleases as a way to reduce costs. Tech companies are also beginning to look to other markets such as Austin, Seattle and Boulder for cheaper space and realizing they can acquire the necessary talent in those areas just as easily. [BB]

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