Canary? Coalmine?

| September 14, 2012 | 0 Comments

A quick blurb in the SF Business Times caught my attention today. According to my Colliers colleagues in San Francisco, available sublease space there has doubled in the past year.  A recent report out of their research department says that sublease space now accounts for a tick over 25% of available space in The City.  Not a terribly high number, but a sizable increase over the last year, and one that occurred in a tightening market.

I took a look at sublease numbers for the Peninsula.  Right now, sublease space makes up about 20% of inventory in San Mateo County, and 18% for the entire Peninsula (including the Palo Alto/Mtn View markets).   Drastically down for the very strong Palo Alto/Mtn View pocket, but climbing elsewhere.  I’ve also noticed a few major blocks of San Mateo County sublease space with recent price reductions.

Not a trend of consequence yet– not even close.  But if we see a similar acceleration of available, potentially volatile sublease space hitting the market over the next few quarters, it could indicate coming changes.

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