A larger sublease market
The historical report describes approximately 1.3 million square feet of office space added to Boston’s sublease market in the fourth quarter of 2020, bringing the reported total to 3.4 million square feet. Subleases represented about 22 percent of available office space, compared with 14 percent at the end of 2019.
These figures describe the pandemic-era market, not today’s available premises. They illustrate how an existing tenant’s unused space can become a separate option from space offered directly by a building owner.
The size and type of space
Spaces of 20,000 to 50,000 square feet accounted for more than half of the reported sublease offerings. Technology, advertising, media and information businesses were prominent in the discussion, with an average reported requirement of approximately 15,000 square feet.
Some businesses had leased more space than they immediately needed before the pandemic. Remote work then changed the amount and arrangement of space they expected to use, creating questions about collaboration, staffing and the cost of retaining an office.
Rent and uncertainty
The report cited an average asking rent of $68.23 per square foot, down 40 cents over the reported period. An asking figure is not an executed lease, and neither that figure nor the old sublease total establishes a current negotiation range.
The article contrasted office uncertainty with medical, educational and life-science demand. Its forecasts depended on how employers would bring people back together and how quickly the wider economy would recover.
Questions for a sublease comparison
For a specific office, distinguish the remaining sublease term from a direct lease, then compare usable layout, included furnishings, building access and the responsibility for operating expenses. A shorter commitment may come with a different set of constraints than a direct lease.
Discuss the actual agreement and any required owner consent with the parties and professional advisers involved. The historical expansion of subleases is useful market context, not a promise of discounted space or approval for a particular business.
Historical account: Original Boston City Properties report
