Longer subleases in Manhattan receive improvement allowances that are more comparable to direct leases
Shorter subleases have a rent discount of 25% compared to longer subleases.
January 23, 2019
- Shorter subleases (defined here as less than 5 years) have a rent discount of 25% compared to longer subleases (defined here as greater than 5 years)
- Additionally to a rent discount, longer subleases Manhattan receive nearly 13 times the tenant improvement allowance on a per square foot basis than shorter subleases
- The long-term sublease market can be a viable source of reasonably-priced space in an environment of rising rents and expensive direct space
Source: JLL Research