The report states that businesses are placing sublease space onthe market for a variety of reasons such as rent reduction,consolidation and relocation. The total of available office spaceinventory for the second quarter stood at approximately fourmillion sf. Grubb & Ellis officials say that sublease spaceaccounts for 14.5% of that total. By contrast, for the two yearsprior, only 8.5% to 9.5% of available inventory was sublease space,they say.

In the last three months, office availabilities outpaced leasingactivity in Downtown White Plains. The Grubb & Elllis reportnotes that the White Plains CBD showed an increase in availabilityof 1.3%, placing it at 19.3% at the end of the second quarter--thesame rate posted at year-end 2000.

Asking rates in Downtown White Plains dropped about $1 per sffrom the first quarter to $28.13. Grubb & Ellis officials saythat the rent reduction is reflects the fact that tenants areleasing "top tier space" and leaving a larger percentage oflower-cost space on the market, causing the average cost to weightoward the lower asking rents. Confident in the excellent urbanmarket, property owners are holding rents steady, they say.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.