The amount of sublease space on the market has been increasing since the beginning of the pandemic, both locally and nationally. Many companies, such as call centers, transitioned their staff to work from home setups and some have decided not to return to the office. In many cases, those choosing not to return are national tenants whose policy across the nation is to remain in work from home situations.
Pre-COVID, the amount of sublease space on the market in the Boise MSA was 137,000 square feet. Currently, there is 417,000 square feet of sublease space on the market, down slightly from the peak of 466,000 square feet. Downtown Boise and Meridian comprise over 50 percent of the total on the market.
These sublease spaces offer opportunities to tenants to lease space for a shorter term, sometimes in turnkey condition and including furniture. Growing companies, or those looking to make inroads into the market, often seek out such spaces to occupy until they know exactly the type of office space they will require.
The successful lease up of these spaces will continue to rely on the strong in-migration to the area by businesses and organic growth of tenants already located in the market.
For more information on the current state of the office market, you can read our current quarter's Office Market Report or subscribe to receive quarterly updates.