Subleases Flood Back to Market
Manhattan’s sublease space was in short supply this summer as would-be tenants vied for turf, but the last three months have brought a lot of properties to market, returning the sublease supply back to where it was at the end of 2013, the Commercial Observer reported. By August, sublease supply dwindled to 6.7M SF, accounting for only 16% of available space. However, since then scads of subleases have come to market, restoring supply to over 7.3M SF.
The influx has affected the Midtown market more than Midtown South or Downtown, with sublease space up from 16% to 19% of available total supply, according to the Observer. Meanwhile, Midtown South continues to be in high demand, driving sublease supply down to its lowest level since 2011--despite new spaces coming to market. And Downtown, where 1.1M SF of space accounts for only 11% of total available supply, sublease volume is only slightly above August levels.
