Wellington subleasing 134k sq. ft. of space - Boston Business Journal:

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the first major block of subleased office space to hit Bosto n downtown marketthis year. Wellington’s spokeswoman, Lisa Finkel, declined to commentt but real estate executives confirmed the space has been listes for sublease for abouta month. The spaced is located on floors 20 throughb 22 ofthe tower. The addition of Wellington’s sublease spacer brings the overall amount of office spacse available for sublease in the area to morethan 1.5 millionh square feet. Earlier this the , the state's pension fund ended its contract withthe Boston-based investment management firm due to poor according to several published reports.
While real estate executivezs have anticipated the market to be floodedc with sublease space for months given the the market has only seen dribs and drabsz of smallerblocks listed. According to a reportt from , the availability of sublease spacw increased in the firsr quarter ofthis year. Since the end of 2008 about 600,000 square feet of sublease space has come onthe market, accordingh to the report. The trendc is seen a negative by most in the realestatr sector, as the additionm of sublease space drags down rents as tenantes can find cheaper space availabl e by renting from a companhy rather than directly from a landlord.
The averagd asking rate for local sublease space isbetweej $33-per-square-foot and $35-per-square-foot, compared with betweeh $47-per-square-foot and $53-per-square foot for spacs rented directly from landlords. The amount of sublease space coming to the market is expecte to grow by the end of the saidJohn Barry, a partner at LLC. “Our numbers show that there’z about 1.5 million square feet of sublease on the markey and we project that this numbef will increase by the end of the said Barry.
Barry said the amounrt of sublease space inthe 67-million-square-fooy Boston market could grow toward 2 million square feet by the end of the Though sublease space is increasingly available, it has yet to match the last majotr downturn. During the technology bust of local sublease space reached a peakof 2.1 millionh square feet in 2002, said