The National Observer | Real Estate Edition | April 21 | Industrial sublease inventory is rising

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It's nowhere near what we're seeing in the national office market but sublease space in the nation's industrial sector has?grown by more than 50% between the first quarter of 2022 and Q1 2023, Savills PLC found.

It comes at a time when a lot of new industrial space is hitting the market and tenant demand has slowed considerably since the early days of the Covid-19 pandemic.

For competitive warehouse markets that aren't in as much danger of being overbuilt, an uptick in sublease space may actually give companies a unique chance to enter that market, Mark Russo, senior director and head of industrial research at Savills, told me.?

Despite the surge in sublease inventory, less than 0.5% of the entire U.S. industrial market is up for sublease right now.

Here are other top real estate stories from around the ACBJ network:

1. Carvana Co. has terminated its?570,000-square-foot sublease?in Dunwoody, Georgia, and, in Tempe, Arizona, the company plans to exit its 135,000-square-foot?office and consolidate elsewhere.
2. A venture tied to New York-based co-working giant WeWork Inc.?has fallen behind on its loan payments?for an office tower in San Francisco.
3. Big office projects for The Goldman Sachs Group Inc. and Wells Fargo & Co. are moving forward in Texas, despite a gloomier economic outlook and hybrid work trends.
4. Although it's made headlines recently for cutting its real estate, Menlo Park, California-based Meta Platforms Inc. is looking to add more office space in Redmond, Washington, for its Reality Labs division.
5. Tampa, Florida, is running out of coveted waterfront real estate, in part because of the growth of its local cruise industry.
6. Wells Fargo's CEO and economists are signaling concerns about the office market, with predictions of higher delinquency rates and an increase in distressed asset sales potentially on the horizon.
7. White House pushes a return to in-person work and has has?asked federal agencies to develop new guidelines within the next 30 days.
8. Some analysts?have modified their outlook on office-focused REITs, thanks to a continued slow return to the office, less demand for space and rising vacancy and interest rates.

Built by Ashley Fahey, editor of The National Observer: Real Estate. Reach me with tips, questions and feedback at?[email protected]