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The landlord, George Comfort & Sons, has begun offering this space for direct lease, but has not set an asking rent.
With the agreement about to expire, it decided to stay on and sign a direct lease with its landlord, Tishman Speyer, for the same space.
"No owner that I have ever worked for has thought that subleasing at a lower rent is better than signing a direct lease".
Lehman was willing to sublease the space, but Mr. Steir said he advised Cadwalader that a direct lease with the landlord would be more desirable.
Reckson Associates Realty took back approximately 70,000 square feet of the space that the telecommunications company had rented and signed a direct lease with Skadden, Arps.
After Lucent vacated its office, they began to market the entire block at Southgate for direct lease from the building owners.
Similar(50)
In 1935, the prospecting permit procedure was eliminated and the present direct leasing procedure substituted.
Brookfield recently converted a 175,000-square-foot sublease with Commerzbank and a 250,000-square-feet sublease with OppenheimerFunds at 2 World Financial Center into long-term direct leases.
He said he was working with four tenants now in sublease space in Midtown that were negotiating to convert their agreements into direct leases.
"Those are starting to be leased, and once they are, then the market for direct leasing of Class A space and build-to-suit office space, can really pick up," he said.
Venable is one of a number of major tenants that have recently converted sublease space into direct leases, a trend that is being driven by the tightening commercial real estate market.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com