Sub-Lessors Extract Value from Mega Tenants

Citigroup to Value Line Citigroup is subletting portions of its 300,000 SF at 485 Lexington to several tenants at large discounts.  One example is a recent four year sublease of the entire ninth floor to Value Line with rents in the mid-$30s. Last year Xerox sub leased three floors from Citi with rents in the forties. Citi paid over $50 PSF when the original lease was signed in 2005. Other subleases in the building include New Oak Capital which sub leased the 25th floor from Accenture paying rent in the forties.

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Random House to Merkle
The Merkle Group subleased the entire 23rd floor at 1745 Broadway from Random House. Whereas Random House has just agreed to pay rent in the mid seventies for a recently signed 361,000 SF deal in the lower floors, Merkle will only be paying rent in the $40s.

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The Duck Expands at Wall Street

Aflac will take 19,645 SF on the entire 29th floor at 100 Wall street one year after leasing a part of the 28th floor. Aflac's starting rent for the new deal is higher than the one paid last year. However, the new lease includes concessions worth over 25% of the deal, which effectively lowers the rent from over $40 to just over $30 PSF.

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