Manhattan’s massive Sixth Avenue office corridor—which encompasses almost 45.5 million square feet of space—is seeing its sublet space drop dramatically, according to a new report from Savills-Studley. The firm saw sublet space decline from 36% of the market in 2011 to 19% in the second quarter of 2014, for a decline of about 45%.
The shift represents a big turnaround for the Sixth Avenue Corridor, noted Heidi Learner, chief economist. “There was a point in time when there was a lot of sublet space on the market. Most of that space has been leased up and, in terms of the space that has become available, the direct space has shifted toward Class A product,” she said. “This change has really improved the optics of the market and has been responsible for the increase in asking rents that have been seen.”Savills Studley: Sixth Avenue Sublet Space Drops Substantially
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New York City Office Sector Report (Q2 2014)