He added that if rents were increased, the illegal sublet
phenomenon would die out.
According to Wharton Properties data, when vacant sublet
space grew in 2000 from 501,088 s/f to 5,797,690 s/f (in 2003), the overall vacancy rate climbed from 3% to nearly 10%; meanwhile, average rents dropped from approximately $54 psf to $42.
Consequently, the total amount of available space in sublets
dropped 4% from 2001 in Fairfield county to 2.
This market was hurt by a jump in sublet
space from companies such as Deloitte & Touche, Shawrout, Value Behavioral Health and Aetna.
What may finally resolve the sublet
issue is that the market for re-sales is picking up.
Strong demand for direct space in Midtown South was offset somewhat by additional sublets put back on the market.
The study found that sublet rents exceeded direct rents, rising 7.
Sublet rents here too exceeded direct space rents, ending the second quarter at $18.
Does the Board consider sublets to be a necessary evil that it wishes to discourage and control, or as a potential benefit that merely will be aided by regulation?
Evasion of the adopted policy should be discouraged, perhaps both by indicating that occupancy by a non-shareholder in the absence of the shareholder for a period in excess of 30 days shall be considered a de facto sublet, and also by establishing an economic penalty for violation of the published procedure.
With a glut of sublease supply on the market, sublet asking rents also experienced a decline, from $56.
The market's sublet availability rate also inched upwards to 4% from the 3.