Quick Comments on NYC Office Sublease Market
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!
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.