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Office Subleases Portend Softening Fundamentals

Published Thursday, September 25, 2008

Landlords across the nation are competing for tenants not only with other property owners, but also with tenants that are offering space on the cheap for sublease. While the amount of subleases available today isn’t alarming, researchers say it is a growing trend that signals softening fundamentals today and declining rental rates ahead. “It’s definitely a predictive indicator of softening in the general leasing environment,” says Matthew Wright, client services manager in the Philadelphia office of Grubb & Ellis. “The confluence of increases in sublease space on the market and decreased tenant demand will certainly have an impact ...

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