Broker Warns of Sublease Problems

Commercial broker Scott Benson says sublease availabilities could inflate availability rates in the Westchester/Fairfield office market in the near future. Although the overall vacancy rate is hovering between 12% and 13%, the second tier/sublease market could prove problematic.

“What has emerged recently that may prove detrimental is a second tier/sublease market that presently nears 1.4 million sf of existing class A/B office space,” predicts Benson, owner of Benson Commercial Realty. “What is even more problematic is that there are nearly 900,000 sf in over 50 separate units that are between 10,000 sf to 50,000 sf, with many of these subleases having remaining terms of between 2.5 years to six years.”