A Look at Office Sublease Terms (How Much Term is Left on the Master Lease)

By Younger Partners Research Director Steve Triolet

With roughly 9.5 million square feet of office sublease space currently available, it’s important to take a look at how long the lease terms are for the various sublease spaces.  Traditionally, subleases with 2 years or less of term left are very difficult to lease unless a direct deal is also worked out (due to the high cost of moving into a new space for a short term lease).  As of February 2021, roughly 20% of the current subleases being marketed have lease terms of 2 years or less, making them likely to roll to direct vacant space before a sublessor is found.  

Among the leases with longer terms (5 years plus), several of these are concentrated in newly constructed office properties (Uber 115,995 SF, Liberty Mutual 357,500 SF, DXC 100,267 SF and HPE 71,296 SF, among others).