The simplicity of the Master Sublease
agreement allows ART to reach out to the market to provide these types services.
All that remains is 7,000-s/f of space at 800 Third Avenue; a tidbit compared to the mammoth 190K s/f of contiguous space Vivendi set out to sublease
in the building three years ago.
United) pay scheduled sublease
rentals to subsidiaries of Airbus.
Riguardi, president of the New York Region of Jones Lang LaSalle, said the sublease
market would decline this year due to attrition, rather than new leasing activity--the type of sublease
decline that will benefit the market.
Tenants have taken advantage of long-term subleases
in great space from high-credit companies making some sublease
In the latter part of 2003, the sublease
availability rate remains high by recent historical standards, but it continues to be absorbed by the smaller space users that are driving this market.
Even the competition to acquire real estate could not measure up to that seen in the leasing market as owners fought to entice tenants away from sublease
By September of last year, the CBD had seen 492,760 SF of negative absorption as a wave of sublease
availabilities impacted the submarket.
The flood of sublease
space that had plagued Manhattan in 2001 and early 2002 appears to be abating, with total sublease
supply decreasing by 303,000 SF overall in August.
This time around, though, these repercussions are absent because much of the newly available space is sublease
space - and technically not the landlord's financial responsibility.
Current and future staffing needs, office and workstation size standards, ancillary requirements such as conference rooms and equipment rooms, and the overall estimated square footage requirement are among the spatial items to be considered before entering the marketplace to avoid wasting time on subleases
that are not suitable to a tenant's needs.
Yet the bottom line is that companies should not make decisions for office space on the basis of price alone, and subleases
often carry a number of disadvantages that can outweigh the financial benefits.