Tech tenants finalized sublease
agreements an average of 8.
The most frequent users of tower sublease
space, according to Jones Lang LaSalle, are boutique hedge funds.
Shore up any holes in lease documentation, such as term commencement certificates and lease exhibits, and make sure all tenant credit support, like guarantors, have affirmed the lease and especially the sublease
The impact of sublease
space on the market boils down to how competitive the space is compared to existing alternatives," said Robert Bach, Grubb & Ellis' Chief Economist.
The amount and timing of the debt service payments mirror the amount and timing of the sublease
payments due during the sublease
's primary term.
I think that the tenant world has become very astute," Turchin said; instead of offering up the back office, tenants looking to sublease
are now offering the most marketable space they can, and they're offering more appropriate terms and build-outs.
Tenants who are faced with the problem of excess space can either sublease
the space or terminate its lease.
agreement may violate the original financing or lease agreement, creating the potential for the vehicle to be repossessed by the creditor or lien holder even if the sublessee is making the payments.
Actual results may differ materially from what is expressed herein and no assurance can be given that the company can fulfill the requirements of the sublease
or generate future earnings.
But that trend was short-lived; rents on sublease
space quickly fell in the next quarter.
About 70 percent of the approximately 10 million square feet of sublease
space available in Midtown has too few years left on the lease and/or is too large to be leased, Powers estimated at the firm's quarterly market analysis meeting.
The dot-com bust has sent sublease