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Sublease Space Remains at Record Levels in Manhattan
Avison Young’s First Quarter 2023 Office Market Report for New York showed increases in sublease space and renewals and indicated trophy properties outperforming lower-tier asset classes. According to the report, trophy properties and top tier product continue receiving an outsized share of demand.
Additionally, sublease share of availability has reached a record 24.3% and the availability rate has been pushed up to 19.7%, signaling opportunities for occupancy. Since year-end 2021, sublease available space increased by over four million square feet, while total available space increased by just under three million square feet.
“In Manhattan, available sublease space continues to drive overall availability upwards,” said Dorothy Alpert, principal and Tri-State president. “Despite a slow start to the year, Avison Young sees the demand for top tier product as a positive sign of occupiers prioritizing their workforce and investing back into their teams.”
- ◦Lease
