NEW YORK CITY-A flurry of deals in the second quarter have put a dent in the amount of sublease office space available in Manhattan.
CBRE Inc. reports that the market share of sublease space to the overall office market fell from 23.3% at the end of the first quarter to 18% at the end of the second quarter of this year. In mid-2009 during the global financial crisis, sublease space in Manhattan accounted for 31% of available office space, according to the Wall Street Journal.
"If you're looking at a tenant that wants to preserve capital, well-built sublease space becomes a good alternative," says Peter Turchin, executive vice president of CBRE. "There are going to be fewer opportunities."
At 1290 Sixth Ave. there were three major sublease deals in the second quarter that included: Morgan Stanley leasing 148,421 square feet, Sirius XM Radio Inc. taking 86,877 square feet and Rémy Cointreau USA securing nearly 53,000 square feet. See story in the Wall Street Journal.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
