By Mike Sunnucks | Rose Law Group Reporter
Available sublease office space has hit record levels in the Phoenix commercial real estate market.
That is according to year-end figures from Lee & Commercial Real Estate Services.
The Phoenix office market saw available sublease space more than double from 1.3 million square feet to 2.63 million square feet, according to Lee’s fourth quarter 2020 office research.
The latter figure is a record for the Phoenix office market.
The overall office vacancy rate also rose from 15.9% to 16.3% from the third to fourth quarter as the COVID pandemic prompted more companies to have their employees work remotely and pullback or re-evaluate workplace strategies.
Still, the real surge in available space has been with sublease offerings from tenants who have downsized their space or have held off on plans to occupy spaces they already leased.