PikeNet Dispatch, May 29, 2003
Vol 8 No. 42 (671), "More than 9,000 subscribers"

Ice Cube (Not for Occupancy)

Subleases and Shadows... Tuesday's Dispatch, Psst, Wanna See My Shadow Space? (May 27), generated lots of interesting comments. Jim Wadsworth of United Properties in Bloomington, MN, believes that the furniture systems industry is in the best position to track shadow space by monitoring the percentage of unused cubicle work stations, which leads to his amusing expression "iced cubes."

On the serious side, a friend speculated about the personal liability of corporate officers under Sarbanes-Oxley. (I'm paraphrasing.) "If the floors are lightly used and really should be for sublet, the company should immediately accrue a sublet loss in the amount of the present value of the difference between the contract rent and the fair market rent." Warning: Always consult your tax professional.

Ed Miller at Colliers Arnold in Tampa, FL describes shadow space as "market intelligence communicated through a relationship, not a database. It demonstrates the anthropological side of the market and the vital nature of local knowledge." Jim Matthews, president of Prime Locations in Dallas, echoed many others. "We deal in ‘shadow space’ all the time. Unfortunately, most of our clients do not want it broadly published that they are downsizing or have a problem site."

Jay Ballou at WorkPlaceUSA wrote in a humorous vein that with 50 million square feet vacant in Dallas/Fort Worth already, "adding shadow space would be like pouring a glass of water into the ocean." Finally, Ken Morris at Morris Southeast Group in Florida is sticking to his story. "The millions of square feet of shadow space, if it were put on the market, would further blow a hole in any potential for an office market recovery through 2005."

--Peter Pike