The sublease discount chart shows average sublease rent, average direct rent, and the discount on the sublease, in the past year and a 3-year average.
Sublessors are often looking to lease out all or part of a space that is already under a lease obligation and as a result, they offer a discount relative to market rent.
Over the past three years, subtenants in Downtown Los Angeles were paying about 19% below direct lease rents, on average. During the same period, subtenants in San Francisco were paying an average of just over 12% below direct lease rents for office space. During these three years, market rents in Downtown LA remained flat, while San Francisco's office market has been booming. The average rent in the past year in San Francisco is about 14% higher than the 3-year average, and subtenants are getting about the same deal in the past year as they have been getting in the past three year. In Downtown LA however, the average rent in the past year is only 2% higher than the 3-year average. As can normally be seen in a slow market, the discount on sublease in Downtown LA is higher, on average, in the past year than it has been in the past three years.