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Manhattan Sublease Space Approaches Great Recession Levels
Sublease space in Manhattan’s office market now totals 16.1 million square feet, and accounts for 26.7% of total available space, Savills’ Danny Mangru says in a new report. Sublease inventory is nearing its peak levels of 16.3 million square feet and 30.3% of available space seen in 2009 during the Great Recession.
Over the past year, available sublease space has increased by 46.8%, up from 22.0% of total available space as of the third quarter of 2019, while available direct space increased by just 13.7% during that time. TAMI industry tenants account for almost half (44.7%) of newly added and expected sublet blocks, followed by financial services & insurance (19.2%) and retailers & luxury brands (10.4%).
Looking ahead, Mangru says that with many organizations planning to operate remotely into 2021, “sublease space will continue to drive supply-side increases as more tenants look to shed space.”
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