A Fresh Take on CRE

Is Your Company Growing? - Now is the Time to Sublease

As I've mentioned in earlier posts, in-light of the credit crisis virtually all of the major financial institutions in NYC are putting sublease space on the market. The difference between now, and the end of last quarter, is . . . big surprise - the market is even worse. Asking rents have finally started to go down, leasing activity is down 30% from last quarter in Midtown, and the number of large blocks of space has continued to increase. There are now 60 blocks of space available over 100,000 SF up from 53 last quarter.

So, what does this mean to your growing company? It means, sublandlords are getting increasing desperate, and landlords don't have the (pardon my French) "balls" to recapture low priced sublease space.

A word of caution for those of you in 2,000 SF thinking of expanding to 4,000 SF. There are still very few small spaces available, making competition for these spaces high, and keeping prices up. I would venture that the likelihood of landlord recapture has gone down, but deals are still few and far between. That said, there is still hope for you to get a good deal . . . move downtown!

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