Q2 2020 | Austin Office | Research & Forecast Report
Sublease space on the rise as Austin maneuvers through the COVID-19 pandemic
By: Colliers International | Austin
Commentary by Ally Dorris | Associate | Austin
Our "Boots on the Ground" viewpoint is the voice of our experts, who have broken down the market data and compared it to what they are seeing for themselves. This is their take on what the numbers actually mean for the Austin office market.
A tidal wave of sublease space has crashed down on Austin. Some of the biggest players in town, such as Parsley Energy and GoDaddy, have listed large blocks of space on the sublease market, over 100,000 SF each. Sublease inventory has increased by more than 40% since the start of the 2nd quarter. The number of subleases has more than doubled compared to Q2 2019. A drastic spike in sublease space is an evident product an economic recession, which was officially announced by the National Bureau of Economic Research in early June. With office space typically being a company's second greatest expense behind compensation, and with so many employees currently working from home, subleasing unused office space has become the first line of defense in efforts to reduce overhead during these unprecedented times.
However, even during a global pandemic, Austin continues to move forward and show signs of prospering. Downtown skyscrapers continue to... To read the full report, click here: https://www2.colliers.com/
Kaitlin Holm | Research & Marketing Coordinator