We have several public contact folders and I would like to consolidate them with sub-folders. I have full permissions to make changes to all folders. When I try to add a sub-folder in my Public Folders/Favorites, it keeps saying I do not have permission. I've tried adding the sub-folders in Public Folders/All Public Folders, being sure to check all the ADD SUB-FOLDER boxes, but that just adds the main folder to my Favorites and none of the sub-folders. I'd like just add sub-folders to my Favorites and to avoid making sub-folders in Public Folders/All Public Folders, as not everyone who accesses the folders may not want them filed in the same manner.

We work off Office Exchange Server.

Microsoft Office 2010

Windows 8.1

By "Office Exchange Server" do you mean "Exchange Online" or "Office 365"?

The folder in your favorites is not a separate folder from the one in public folders, it's just a pointer.  You can't add a subfolder to your favorites that isn't in the public folder database.