While asking rents are up along Sixth Avenue, demand may not be rising as fast, according to a Savills Studley report.
The amount of space available for sublet dropped from 1.8 million square feet in the third quarter of 2011 to a little more than one million square feet (19 percent of the the total available space) in the second quarter of 2014.
The decrease in sublet space, along with more high-quality space available for rent, has pushed up prices. This doesn’t account for space that will be freed up over the coming months and years. Some large tenants — such as Time Inc. — will be leaving the area.
The amount of available space on the Sixth Avenue corridor has decreased by 2.1 percent since the third quarter of 2009. In total, according to the report, 61 spaces have been on the submarket for a year or more, but only seven saw a decline in asking rents.More office rental space on Sixth Avenue is headed to market
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New York City Office Sector Report (Q2 2014)