Subleases up 40% across US as companies ditch space

JPMorgan, Salesforce, PricewaterhouseCoopers add square footage to glut

National /
Mar.March 30, 2021 12:30 PM
JPMorgan Chase CEO Jamie Dimon, Salesforce CEO Marc Benioff and PricewaterhouseCoopers US Chairman Tim Ryan (Getty, PwC)

JPMorgan Chase CEO Jamie Dimon, Salesforce CEO Marc Benioff and PricewaterhouseCoopers US Chairman Tim Ryan (Getty, PwC)

JPMorgan Chase, Salesforce and PricewaterhouseCoopers are among a growing number of firms looking to sublease space as the demand for traditional offices diminishes.

About 137 million square feet of office space was up for sublease across the U.S. at the end of last year, according to CBRE Group, the Wall Street Journal reported. That represents a 40 percent annual increase and the most since 2003.

Companies are aiming to reduce their physical presence as they plan to let employees work from home at least some of the time, but are locked into long-term leases.

For landlords, subleases are a thorn in the office market. Sublease space typically commands a 25 percent discount from the previous price, David Falk, president of the New York tri-state region at Newmark, told the Journal.

JPMorgan began subletting its 700,000 square feet of office space in lower Manhattan earlier this year, according to the publication. PricewaterhouseCoopers and Yelp are also trying to sublet their space in New York.

[WSJ] — Keith Larsen


Related Articles

arrow_forward_ios
5875-5887 Sunset Drive in South Miami (Google Maps)
Capital Realty affiliate sells South Miami office and retail building for $5M
Capital Realty affiliate sells South Miami office and retail building for $5M
Clockwise from top left: 375 South County Road, 225 Worth Avenue, 220 Peruvian Avenue and 219 Worth Avenue (Google Maps) 
Burton Handelsman sells Palm Beach retail, offices for $58M
Burton Handelsman sells Palm Beach retail, offices for $58M
Preminger Investments principal Zachary Preminger and a Lincoln Square (Lincoln Square via J. Christopher Photography, Preminger via LinkedIn)
TM Real Estate sells Miami Gardens office park for $15M
TM Real Estate sells Miami Gardens office park for $15M
Executive Court at Jacaranda at 7800-8040 Peters Road (Google Maps)
Intalex Capital buys Plantation office park for $15M
Intalex Capital buys Plantation office park for $15M
Soliman Corporation's Jeffrey Soliman. (Google Maps, LinkedIn via Soliman)
Canadian investor scoops up Hallandale Beach office building for $17M
Canadian investor scoops up Hallandale Beach office building for $17M
Orion Real Estate Group executive chairman Joseph Sanz and Pinecrest Town Center at 12651 South Dixie Highway (Google Maps)
Cofe Properties sells Pinecrest office-retail plaza for $32M
Cofe Properties sells Pinecrest office-retail plaza for $32M
Sunrise Corporate Plaza at 1300 Sawgrass Corporate Parkway with Stiles CEO Kenneth Stiles (right) and IP Capital Partners president Jason Isaacson (CBRE, Stiles, IP Capital)
Stiles sells Sunrise office building to IP Capital for $25M
Stiles sells Sunrise office building to IP Capital for $25M
Waterford Business District in Miami and Subway CEO John Chidsey (Nuveen, Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Subway inks lease at Miami’s Waterford Business District, plans to bring 100 employees
Subway inks lease at Miami’s Waterford Business District, plans to bring 100 employees
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...