Those companies with surplus space to offload face a formidable task. Any tenants without the highest credit must produce significant security in cash or letters of credit. Landlords with existing space are offering little or no tenant improvement allowance. A significant supply of sublet space has put dramatic downward pressure on rents. After two years of a heavily skewed landlords' market, some much-needed relief has finally occurred.
Tenants now have multiple opportunities to meet their space requirements.
Those tenants that can be flexible with locations and timing will be able to take advantage of sublet space at dramatically reduced rates. Careful planning and analysis are once again recommended.