Subletting is becoming increasingly relevant

Strong growth in the past and future

The supply of office space for subletting increased by almost 4% in the first quarter of 2022 (CBRE, 2022). This follows a slight decline in the amount of office space in the second half of 2021. The main reason for this was the favorable economic situation at the time.

All in all, the supply of space for subletting has changed significantly in recent years. In the United States alone, the supply has increased by 80% within one year. In addition, a future annual growth rate (year-over-year) of 60% is forecast. The reasons for this increase in availability are manifold and range from downsizing and lower growth expectations to an increase in remote and hybrid working.

When to sublet office space

There are a variety of reasons why a company or private individual might want to sublet the unused space in their office. The following two are the most common: Not all of the office space is needed or the office space is too small.

What are the advantages of subletting?

Here, too, there are a number of advantages that cannot be adapted to every situation. However, it is likely that the following two advantages will occur in every situation: Subletting excess office space helps cover some of the liabilities as well as subletting can help a company right-size its real estate portfolio.