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The Mortgage Bankers Association expects 2022 volume for commercial and multifamily mortgages to be comparable to last year

Manhattan Sublease Space Supply Begins Ebbing

After seeing sublease space continuously increase during the pandemic, the Manhattan office market is finally seeing a slowdown in space being put on the market, Savills research director Danny Mangru reports. During the second quarter, Manhattan sublease supply dipped by 0.7 million square feet and now totals 21.3 million square feet, or about 24.7% of total available space.

Mangru reports that more than 50% of mid-size tenants – spaces above 20,000 square feet – have either re-occupied or backfilled their space rather than subletting them. Additionally, 25% of office spaces larger than 20,000 square feet have already been sublet.

The asking rent spread between direct ($80.51) and sublease ($59.16) space widened to 26.5% during Q2, writes Mangru. He adds, though, that while sublease supply has contracted, more space is likely to become available, albeit at a modest pace, as many organizations try balancing new, hybrid workforce strategies with long-term space needs.


Inside The Story

Savills' Mangru

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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