The office market has been one of the most impacted by the pandemic. With remote work policies in place for foreseeable future, many businesses have looked for ways to shed existing office square footage. The trend has created a wave of new sublease supply, according to a new report from Colliers International.

While a large sublease supply will have implications on the direct lease market, it could mean good news for tenants actively looking for office space. This is particularly true for businesses that are currently reassessing their office needs and are wary of signing a long-term lease. The sublease market has the potential to provide those users an opportunity to lease high-quality office space at favorable lease terms.

Already, class-A asking rents in CBD markers are down by 2.7%, but sublease space is currently leasing at an average 23.9% discount compared to direct lease space, per the data from Colliers International. This is above historical discounts for sublease space. The sublease discount historically has been around 20% below market rate, Jonathan Adelsberg, a partner and chair of the leasing department at law firm Herrick Feinstein LLP, told the Wall Street Journal . "Given the plethora of space on the market today, we expect to see discounts greater than that," he said.