SF Mid-Peninsula Sublease Space Still on the Uptick

JLL chart of the week mid-peninsula sublease space The Registry real estate

Jones Lang LaSalle Chart of the Week

Despite the consistent demand for space within the 10,000 to 25,000 square-foot range in the mid-Peninsula, available sublease space has been on the rise over the past 24 months. Of the top 10 office subleases, seven were placed on the market by tenants with excess space while three were technology startups who leased 2 to 3 times more space than what they were currently occupying at the time.

Within the past 30 days, 64,121 ft.² of subleases were added to available inventory while 61,231 ft.² was removed. However, only 31,231 ft.² was actually released as the balance of the space was withdrawn from the market by the sublessor. The average time on the market prior to the spaces being leased was 3.6 months, and were primarily located in downtown micro markets reflecting the ongoing demand for product along the Caltrain spine.

The life sciences sector represents 24.9 percent of sublease space with the hardware and software sectors following suit with 14 percent and 12.4 percent, respectively. The largest office sublease currently on the market is Avid Technology’s space at 2001 Junipero Serra in Daly City for 123,189 square feet.

Courtesy of Jones Lang LaSalle

West Coast Commercial Real Estate News