This is What's Happening in Boston's Sublease Market
The effects of COVID-19 on Boston’s commercial real estate industry have been significant, as you may have read in Andrew Orpik’s previous blog post. As a result of widespread layoffs, interrupted cash flow for businesses and the forced efficiency of work-from-home, many companies will conclude that they do not need the same amount of office space as they did before the pandemic began. In most cases, these companies have remaining lease term and some of them will elect to market their office space for sublease as a way to reduce or eliminate an expense and maintain financial stability.
In the month of April alone, 13 new subleases over 5,000 square feet came on the market in Downtown Boston, totaling over 190,000 square feet of space. Overall in April, there were 42 total subleases over 5,000 square feet across the entire city, totaling 1.1 million square feet.
This increase in subleases will provide opportunities for companies who are forced to make decisions regarding their office space due to upcoming lease expirations. A sublease could provide a relocation opportunity in a more appropriate footprint at a discounted rental rate and little to no out of pocket expenses to build out or furnish the space.
What if you are the one who wants to sublease your office space? Cresa is here to help. But we all know that the current stay-in-place orders make it difficult to actively market a sublease. Potential subtenants will likely not want to tour the space in person. In the same way we’re using technology like Zoom and Google Hangouts on a daily basis to work and connect, we can utilize technology for the purpose of marketing your sublease. There are a variety of platforms, such as Matterport and Envisioneer, for creating realistic virtual tours, and locally we have tremendous opportunity for video marketing thanks to Cresa Boston’s in-house photographer and videographer, Duncan Lake.
If you’re considering putting your space on the sublease market, Cresa’s experienced team is here to help you analyze your options.