In a crowded sublease
market, we were able to implement the last phase of a two-year strategic growth plan for KBRA."
terms come in a variety of flavors--there is much more flexibility in a sublease
than the standard 3 or 5 year term that a landlord is willing to offer.
Similarly, while some leases specify that landlords must be reasonable in considering whether or not to grant such a request, other leases give landlords broad discretion to withhold consent to a sublease
for any reason.
Base rent under the sublease
agreement will be USD1,468,269 per annum payable in equal monthly installments on the first day of each month.
The most frequent users of tower sublease
space, according to Jones Lang LaSalle, are boutique hedge funds.
Shore up any holes in lease documentation, such as term commencement certificates and lease exhibits, and make sure all tenant credit support, like guarantors, have affirmed the lease and especially the sublease
For many landlords, who have seen the phenomenon surge into a major market force over the past two years, the prevalence of sublease
space is the equivalent of competition with an ongoing fire sale.
At the end of the sublease
primary term, FM has a "fixed-payment option" to purchase from X the headlease residual (i.e., the right to use the property beyond the sublease
primary term, subject to the obligation to make the rent postpayment) for a fixed amount projected (as of Jan.
A total of just 46,294 s/f on the 22nd and 23rd floors remain available for sublease
This strategy can prove vastly more profitable than standard sublease
or recapture solutions.
"In addition, subleases
are beneficial for tech companies because they typically necessitate less of an up-front cash outlay related to space build outs than direct space," Learner added, citing BuzzFeed's 57,691 s/f sublease
from jewelry giant Tiffany & Co.
It's your tenant, telling you he wants to sublease
10,000 square feet of office space.
Among 10 deals over 40,000 s/f that closed in the first two quarters are the Sumitomo Corporation's sublease
of 98,454 s/f at 300 Madison from the Canadian Imperial Bank of Commerce; Indeed subleased 49,536 s/f at 125 West 55th from MacQuarie Equities; and there were three deals in AXA Financial's space in 1290 Avenue of the Americas, including a 148,421 s/f sublease
by Morgan Stanley.
The majority of office sublease
space listed as available in Midtown cannot be leased at any price, said John Powers, chairman of the New York tri-state region at commercial brokerage CB Richard Ellis.
Landlords holding this space should be particularly focused on the sublease