Manhattan’s sublet space on the decline

In welcome news for Manhattan commercial real estate owners, the amount of sublet space on the market fell in February for the fourth month in a row, according to new data from Cassidy Turley. There was 15.2 million square feet of sublet space available — mostly from financial companies that are shrinking within their Class A office buildings — as of the end of the month, down 11 percent from the 17.1 million square feet on the market in October, the data show. Because the available inventory is seen as desirable, the firm is predicting further declines: JPMorgan Chase’s 150,000 square feet at 320 Park Avenue is nearing a deal, said Richard Bernstein, a vice chairman at Cassidy Turley, which is also representing the bank in the transaction. Sublet space tends to be cheaper than typical lease space, and has
played a large role in depressing office rents across the city. “The absorption of sublet space toward the end of the year will decline [as supply diminishes],” Bernstein said. [Crain’s]