It took about 90-days to dispose of this marvelous space on the 39th floor. The incoming subtenant is a local law firm, and we got a rental for the 2 year term of about $45 per sq. ft.

That is a great deal for the subtenant and an OK deal for the sublessor…but given the present market conditions it is really a great deal for the sublessor also.

We had a lot of interest from the brokerage community and from principals, but these were the first guys who really came to the plate and took a good swing.

Now, we still have a marvelous 7,500 sq ft unit available for a 3 year sublease at 1 Dag Hammarskjold Plaza, near the U.N.     CLICK HERE TO VIEW PHOTOGRAPHS OF THE SPACE

The space has 9 beautiful windowed offices and 25 built in workstations. Completely furnished Manhattan office space near the UN.  1 Dag is also know as 885 Second Avenue (between 47th & 48th Streets). This is a beautiful office building and the space has great views and light.

If you are looking for a 3 year sublease of office space in NYC, you should consider this unit because it is in move-in condition and completely furnished.  The office space rent here will ultimately be below $40 per square foot, plus electric.

In one year, the pendulum has completed it’s swing, with more than double the amount of office space for sublease on the market in New York City.  A year ago, we measured 3,557,000 square feet of space available for sublease.  Today, we have current listings for 8,189,000 square feet of available space representing a 130 percent increase in one-year. And we believe that this trend will continue for several years.

This is an excellent time for Tenants requiring new or additional space. We have not seen rent levels this low for more than 5 years and I am happy to report that the CRE arena seems to be revising it’s pricing schedules with a reality based supply and demand scenario.  Huge supply and Little demand means lower rent, more free rent, more landlord work.

We just put a beautiful midtown office space, comprising 7000 sq ft on the 16th floor at 48th Street and Second Avenue.   This space has 9 windowed offices (all more than 2 windows) and 23 workstations in a very bright, clean, modern setting.  It is an excellent work group space that is completely furnished, finished and in move in condition. And, the beautiful part is the asking price:

$45.00 per square foot           CLICK HERE FOR PHOTOS

This is clearly space that a year ago would have commanded twice that…and for the right, completely qualified subtenant this price might even be a bit negotiable.  Drop me an E-mail if you would like more details, or call me at (212) 986-3636

Lehman / Merril / BofA

We have maintained for some time that the material has not really hit the fan yet.  This weekend, it moved a lot closer to the blades, and we suspect that a major cascade of sublet space is soon to be listed in public.

What does that mean ?  Well, for the first time in a few years, if the vacancy factor adjusts a bit downward, landlords bargaining on full occupancy might have to shift their tune a bit, as the marketplace begins to emit the wet sucking sounds of bottom fishers trodding through space.

For the past 18 months, we’ve felt that the market has been artificially butressed by a vacancy factor out of line with the general economy.  Anticipate the first adjustments in the coming weeks.  We have seen that rents have frozen at a particular point on the upward march, and that more concessions (free rent and/or landlord work) are being offered by owners.  Shortly, rents should begin to drop - and while we may not get back to normal, we should get back to the area where normal businesses can afford to pay rent.  The only quesltion left is will there be any normal businesses that can pay normal rent ?

Neal