Flight to quality continues. Occupiers are choosing the best locations, space quality, and value within the move-in ready sublease spaces at rates well below a direct lease.
The North and South Financial Districts are the top performing submarkets in terms of subleasing activity. Availability across the City is the highest since the 1990s.
More sublease space is anticipated to come to market in 2022, offsetting absorption and offering occupiers an alternative to leasing direct space. Plug-n-play sublease options will continue to be appealing choices as subleases minimize risks from TI cost volatility, supply chain constraints, and labor shortages.