Snapshots

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

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