By Dale Brown | Phoenix Business Journal
What kind of near-term future do you see for the Phoenix-area subleasing market?
“The sublease market is full of opportunities for businesses to experiment with new/different/better locations on a cost-effective basis while “right-sizing” in-person office requirements.” – Beth Jo Zeitzer, CEO and designated broker, R.O.I. Properties.
“The office sublease market is creating quite a bit of shadow vacancy and will put some downward pressure on rents in the near term.” – Perry Laufenberg, managing partner, SVN | Desert Commercial Advisors
“The subleasing market is vibrant, accessible, and allows for quick decision making. When a company is downsizing, there’s a significant amount of sublease space that is well-appointed, well-located, and ‘move-in ready.’ This is attractive for companies still trying to figure out how large their ultimate space needs to be, are working with staff-related issues, and are attracted to space that is immediately available. The near-term future is extremely advantageous for companies.” – Sharon Harper, chairman and CEO, Plaza Companies
“Sublease space has risen significantly over the last year, in the near term, larger tenants will be finding some opportunities that they may not have been able to locate or afford in recent years. As the large-block, dense-office users continue to reevaluate how they utilize space with shifting to smaller footprints and lower employee-in-office occupancy I feel we will continue to see a surge of sublease options hitting the market. This will also lead to important decision points for landlords to break down the large footprints into smaller suites. Still, the expansions and relocations of many California-based firms will slowly chip away at these and other vacancies.” – Jon Rosenberg, co-founder and designated broker, LevRose Real Estate LLC
“The subleasing market is vibrant. We’d love more space. Developers cant build space fast enough.” – Eric Termansen, founder, Western Retail Advisors
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