Corporate Tenants Dump Excess Office Space, Sending Shivers Through the Market

Partner and Chair of Herrick's Leasing Group, Jonathan Adelsberg, was quoted in the Wall Street Journal discussing the state of the leasing marketing in New York City today. 

The article states that Jonathan discussed how, "[The office market] is made worse because corporate tenants are often more willing to offer their space at lower rents just to get some cash for it."

Jonathan is quoted saying, "There will be cases where tenants and landlords are going to be competing for the same business."

The WSJ mentions that "the sublease discount historically has been around 20% below market rate," with Jonathan adding, "but given the plethora of space on the market today, we expect to see discounts greater than that."