Germans re-think triple-digit rents and sub-lease pricey digs.

CRESA Partners has negotiated a deal enabling E.ON North America, Inc., to sublease 10.612 s/f to Travelport, Ltd. at the Chrysler Building at 405 Lexington Avenue, said Jack Petrie, CRESA Partners senior vice president.

E.ON North America is a subsidiary of a German-based utility and energy firm.

The subtenant, previously located at 9 West 57th Street, will take immediate occupancy of the entire 57th floor for a term of four years and three months.

"Many international companies are beginning to question triple-digit rents in trophy buildings, debating whether the cost provides enough value," said Petrie. "Some, such as E.ON, are choosing to sublease their properties, and redirect their re sources."

According to Petrie, Altana AG, a German pharmaceutical firm, has also engaged CRESA Partners to dispose of its office space at 712 Fifth Avenue. Both E.ON and Altana are members of the German Chamber of Commerce, whose many members have worked with CRESA Partners on both leasing and disposition transactions.

"With rents continuing to escalate, all companies need to reevaluate their space and their needs," said Petrie. "If a tenant is paying exorbitant prices, but is not getting enough value out of the space, it should consider subleasing its current space and looking to relocate to a more affordable building."

Petrie represented E.ON, and Nick Poshkus of Coldwell Banker Commercial represented Travelport, Ltd. The Chrysler Building, owned by Tishman Speyer Properties, was represented by Greg Conen.