Co-Workers E-mail to a Client – 4,000 to 5,000 sf

I am on a file with a co-worker and he sent the following email to a client… which I agree with.

We continue to see quite a few sublets come to the market, a lot of which are built out. One thing you may want to consider is taking advantage of a sublease at discounted rents. The reason I mention that is that vacancy is still low and the majority of landlords are not bending on their rental rates. TD Centre will will be more negotiable, come next year, but only for larger size tenancies of 10,000 -15,000 and greater. My advice is, if you are month to month, to let us know what you are looking for so we can keep our eyes out for something that could be a match. If you are in the same size range as before and want to save some money, your best solution will be to find a sublease that is already built out today versus on a direct basis in 2010.

I agree with him. The time to capitalize on a quality sublease is today… or maybe this summer.
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Sublease Study – “A” Class Financial Core Toronto

competitive-sublease-space

A client asked how long “A” class space is staying on the market.  What was once 2 – 4 months is now 6 – 8 months if you are between 4,000 and 8,000 sf.  Most sublease are now coming out with incentives to try and generate additional interest and you need to be $3 – $4 per square foot cheaper than the direct space (depending on how nice the sublease is) to create the interest you need to move the space.  My opinion has always been to lead the market if you want to get rid of the space quickly and right now, the market is going down.

Any thoughts on this?