JLL: Don’t Fear San Francisco’s Current Sublease Vacancy
Sublease vacancy in San Francisco reached 1.1M SF during the last quarter, according to JLL data. Comparatively, the cyclical low was 500k SF in 2012. Recent vacancy is a far cry from the 5M SF of sublease vacancy in 2001 when the tech bubble burst. Sublease vacancy reached only 1.5M SF during the last recession.
Sublease availability has hovered around 2M SF throughout this year compared to 1.5M during 2015. The tech sector makes up most of the sublease space available and offers tenants plug-and-play short-term options. Twitter's sublease of about 184k SF is among the largest available, but JLL expects it to go quickly since it’s one of the best creative office options on the market.