Remote Work Revolution
Over two years into the pandemic, we're finally seeing the effect of remote work on the local office sector. Unsurprisingly, many local office tenants with larger footprints have recently opted to sublease portions of their space. These include ~60K SF in Carpinteria from Procore, ~40K SF in Goleta from Appfolio, ~28K SF on State Street from Invoca, and ~23K SF in Goleta from Yardi. Many smaller companies are also in the process of rolling out subleases.
This flood of new space to the market will greatly affect the office vacancy rate with rental rates likely to follow.