A confluence of contradicting factors have hit the office sublease market in Manhattan, according to a recent report by Jones Lang LaSalle cited by Crain’s, largely because of the strengthening direct-lease market.
The amount of sublease space available has declined, the research shows, as 21 percent of all space on the market in the first half of 2011 was available for sublease, compared to 30 percent in 2009. The most coveted space, in city towers above the 25th floor, was on the market for an average of 8.5 months, three months less than space at the 10th floor and below.
Yet despite these positive signs for those seeking sub-tenants, subleases are actually getting snapped up so quickly because of weaker price points compared to the direct-lease market. The disparity sat at 25 percent for the first half of this year, thanks to the improving commercial leasing market, Crain’s reported.
The most frequent users of tower sublease space, according to Jones Lang LaSalle, are boutique hedge funds. [Crain’s]