NEW YORK CITY-During the second quarter of 2001, the availability rate for office space moved up slightly in Midtown and Downtown, to 5.3% and 5.4%, respectively. At the same time, the class A Midtown rate declined by more than $10 per sf, while remaining unchanged, at approximately $50 per sf Downtown, according to data compiled by Julien J. Studley Inc.

Over the last six months, the local commercial real estate market has slowed down with “surprising speed,” in Studley’s words, and has seen a dramatic growth in sublease space. This rapid response to a slowing economy is unusual because the market typically takes more than six months to feel the consequences.

From the second quarter of last year to 2Q of 2001, the amount of sublease space has shot up citywide over fivefold, from 1.8 million sf to 10.2 million sf. How long these conditions will last is anyone’s guess, but they do force tenants and owners alike to balance the risks and benefits of subtenancies, Studley notes.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.