As office-based businesses grappled with the repercussions of work-from-home operations in the pandemic, the longstanding practice of subleasing suddenly gained new relevance. But as the coronavirus panic fades, so is the subleasing trend at a point when there’s plenty of office space on the market.

In the greater L.A. market, roughly 1.5 million square feet of subleasing space has been pulled off the market in the first half of the year by companies changing course, according to Savills, a real estate research firm in downtown Los Angeles.

“When we went into lockdown last spring, we saw tons (of subleasing) on the market all over the region,” said Mike Soto, Southern California director of research for Savills. “Everyone was working from home. Cost-conscious occupiers got someone to share or companies realized ‘We might go remote from here on out and we may not need any space.’”


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