Sublease Prices Skyrocket

JLL's David Churton (left, with Vornado's David Greenbaum) is currently working on subleasing out two floors at Union Investment's 555 Mission with colleague Hudson Smythe, and it comes at a good time: Sublease rates are on the rise with market prices, according to the firm, up 8.7% year over year and a whopping nearly 90% over since the low point of 2009. Thank market conditions and tight availability for the $39.68/SF average sublease rents.

David tells us there's about 18k and 16k SF of sublease space sitting on the 20th and 23rd floors, with a mix of partner, associate, and admin offices. The long-term sublease is available through the end of 2019; the average sublease term is 41 months, up 23% since the 2009 low due to significant early relos and the shedding of excess space. Tenants have their options these days—there was some 1.3M SF of sublease space on the market at year's end, according to JLL stats.

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