Is sublease space cheap in Milan?

Sublease typically trades 15–30% below direct asks for equivalent specification. The total economics depend on remaining term, TI condition, and the assignment/sublet provisions in the prime lease.

Can I convert a sublease to a direct lease in Milan?

Sometimes. On longer-horizon takes, ask the landlord to write a fresh direct lease at sublease commencement — they get a creditworthy long-term tenant; you get rent-free and TI.

Sublease availability in Milan is concentrated in older Class B and lower-tier Class A stock; trophy assets like Porta Nuova clear quickly even when the broader market shows 9.2% vacancy.

Direct vacancy is 9.2%; sublease overhang is concentrated outside the trophy tier.
Sublease space typically prices 15–30% below direct asks for equivalent specification.
Term-take risk and limited TI are the two biggest sublease tradeoffs.
Trophy submarket (Porta Nuova) has the thinnest sublease overhang.

Milan Class A sublease market

sublease">Sublease availability in Milan is concentrated in older Class B and lower-tier Class A stock; trophy assets like Porta Nuova clear quickly even when the broader market shows 9.2% vacancy.

TL;DR

Direct vacancy is 9.2%; sublease overhang is concentrated outside the trophy tier.
Sublease space typically prices 15–30% below direct asks for equivalent specification.
Term-take risk and limited TI are the two biggest sublease tradeoffs.
Trophy submarket (Porta Nuova) has the thinnest sublease overhang.

Where the sublease overhang sits

In Milan, sublease availability concentrates in the older Class A and Class B segments — not in trophy product. Vacancy across the broad Class A index is 9.2%; the trophy tier in Porta Nuova is structurally tighter.

What you give up

Subleases trade at a discount, but you inherit the prime tenant's term, get limited or no TI, and live with whatever fit-out">fit-out exists. For occupiers under a 24-month horizon, that tradeoff usually wins. For multi-year HQs, direct deals with rent-free and TI almost always produce better effective economics.

Negotiating points

Look for direct deals with the landlord at sublease commencement (a "bypass" structure) — landlords will sometimes write a fresh long-term lease to take a problem space off the prime tenant's books. Net leases under the 6+6 standard (six-year minimum with tenant renewal option for another six). Free rent of 4-9 months and TI of €60-€100/sqm typical.

Key facts

city	Milan
country	Italy
region	EMEA
classARentLocal	48 EUR/sqft/yr
classARentUsd	$52/sqft/yr
vacancy	9.2%
typicalLeaseYears	6
typicalRentFreeMonths	5
submarkets	5
primeYieldPct	4.6%

Frequently asked questions

Is sublease space cheap in Milan?: Sublease typically trades 15–30% below direct asks for equivalent specification. The total economics depend on remaining term, TI condition, and the assignment/sublet provisions in the prime lease.
Can I convert a sublease to a direct lease in Milan?: Sometimes. On longer-horizon takes, ask the landlord to write a fresh direct lease at sublease commencement — they get a creditworthy long-term tenant; you get rent-free and TI.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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