Sublet availability in October rose to 9.8 million square feet, Robert Sammons, vice president of research at Cassidy Turley, wrote in the New York Observer. And even though a number of Downtown firms were forced to relocate to Midtown sublet space as a result of Hurricane Sandy, “it likely will not make much of a dent in the figure,” Sammons said.
The reason for this, he said, is that tenants with multiple office locations are devising ways to share desks at other offices. Also, firms are letting some employees work from home.
A more solid reason for the availability is continuing cutbacks in the financial services industry, he said.
The October sublet availability figure comes in the wake of a 2012 high of 10.4 million square feet in July, followed by 9.7 million square feet in September. A total of 70 percent of available sublet space is in Midtown. [NYO] — Zachary Kussin