NYC office sublease inventory drops sharply

New York /
Jan.January 10, 2011 10:15 AM

New York City’s office subleasing marketing is drying up, and landlords are readying for rent hikes in its wake, Crain’s reported. Data from Cassidy Turley shows that in November, the amount of available New York sublease space — usually 30 to 40 percent cheaper than space available for direct leasing — hit 10.9 million square feet. That’s the city’s lowest level since October 2008, when the market crashed and subleases began flooding the market as tenants with pricey Park Avenue office space snapped into consolidation mode. By May 2009, 17.3 million square feet of sublease space was available in New York City and had pressured landlords city-wide to drop their asking rents. Today, many of those subleasing bargains have been snatched up, and some landlords have already taken note. “Landlords are going to be more aggressive on raising rents now that they aren’t competing with as much sublease space,” said Robert Sammons, vice president of research at Cassidy Turley. [Crain’s]


Related Articles

arrow_forward_ios
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
SL Green CEO Marc Holliday and One Vanderbilt (Getty)
SL Green asking record $322 psf at One Vanderbilt
SL Green asking record $322 psf at One Vanderbilt
Hybrid horizons: How 3 Manhattan office tenants are retooling the workplace
Hybrid horizons: How 3 Manhattan office tenants are retooling the workplace
Hybrid horizons: How 3 Manhattan office tenants are retooling the workplace
What tenants pay at Stellar Management’s One Soho Square
What tenants pay at Stellar Management’s One Soho Square
What tenants pay at Stellar Management’s One Soho Square
(iStock)
Long Island office market on pace for dreadful year: report
Long Island office market on pace for dreadful year: report
Josh Baumgarten (left) and Adam Schwartz, co-CEOs and co-Chief Investment Officers of Angelo Gordon with 2 Huntington Quadrangle, Melville, 6 and 8 Corporate Center Drive in Melville (Angelo Gordon, We’re Group)
Here’s what tenants pay in Angelo Gordon’s Long Island office portfolio
Here’s what tenants pay in Angelo Gordon’s Long Island office portfolio
In Greenwich, CT, office demand has popped, lifting rents and spurring bidding wars for choice spaces. (iStock)
Greenwich targets NYC’s office workers as leasing surges 312%
Greenwich targets NYC’s office workers as leasing surges 312%
The share of vacant sublease space in the total vacancy was 16.5 percent, the highest since 2005. (iStock)
Office vacancy rate in New Jersey nears 19%
Office vacancy rate in New Jersey nears 19%
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...