Probably the biggest story in the Manhattan office market at the close of 2008 is sublease space. A lot of it’s spilling onto the market, a stark indicator of what belted the office market, long the nation’s healthiest, off its pedestal just a few months ago: the economic crisis.
Simply put, many companies are looking to shed office space they no longer need because of layoffs or tighter budgets. (Most recent exhibit: two financial firms at 1095 Avenue of the Americas.)
Above is a chart by Colliers ABR research ace Robert Sammons showing the amount of Manhattan office space available for sublease from March 2003 to October 2008. Currently, there’s over 6.79 million square feet of Class A space available for sublease, and another 4 million-plus of Class B and C space.