3 ms·
One data point: we signed a sublease 3 months ago at 18-20% lower than market. This was a 10k+ sqft space in a Class A building in FiDi. Also notable: other sub
by lquist 11y ago
One data point: we signed a sublease 3 months ago at 18-20% lower than market. This was a 10k+ sqft space in a Class A building in FiDi. Also notable: other subleases at the time were ~10% off.
- samcheng 11y agoI don't know your particular situation, but if your master tenant signed their lease a few years ago, 20% under market rate could still represent a good outcome for both parties. After all, commercial rates have roughly doubled since 2010. (See link below) For sub-leases in particular, other (non-monetary) factors are important, for example willingness of the sub-tenant to vacate at certain timetables, sub-tenant palatability to the landlord, and existing prior relationships with the master tenant. http://my.paragon-re.com/Docs/General/SixtyFortyImages/7-15_Invest_SF_Office-Rents_by-Qtr.jpg http://my.paragon-re.com/Docs/General/SixtyFortyImages/7-15_...