DealBook has an article up today about the office sublease market in NYC and the impact lower offering rates are having on space offered directly by building owners. Every time I read about NYC rents my head just spins. The numbers are just astronomical. According to the article, average asking rents for Class A office space offered directly by building owners is $72.03 PSF while average asking rents for similar sublease space is $55.68 PSF. These rents are down from last years figures of $95.62 PSF for landlord offered space and $83.06 for sublease space.
Instead of paying this kind of rent, maybe these companies should just relocate to California’s Inland Empire where they can buy a brand new building outright for the cost of one year’s current sublease rent!
1 comment
Joshua says:
October 29, 2009 at 1:10 am (UTC -8)
ive always thought the same thing. and $1000 PSF+ rents for retail on 5th/madison. gotta love it. if the people working/shopping in these areas came to the IE theyd all run to the empire tower (tallest bldg at 9 stories) and jump.