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New York & Tri-State  + Midtown New York  + Office  | 

Tide of Manhattan Office Sublease Space is Turning

Manhattan office sublease space ballooned during the COVID-19 pandemic, as tenants shed space they thought they wouldn’t need. However, CBRE’s Nicole LaRusso and Michael Slattery report that that some of those spaces—which account for 26% of all available space in Manhattan—are being pulled back, in a possible repeat of the patterns the market saw following the Global Financial Crisis.

In 2009-2010, following the GFC, 13.6 million square feet, or 57% of the gross sublease space added during the recession, was eventually withdrawn from the market. Year to date, two million square feet of Manhattan sublease space has been withdrawn, slightly more than 10% of the 19.3 million square feet listed during the pandemic. Additionally, the rate of new listings has slowed.

“As companies bring more workers back to the office—most for the majority of the work week—sublease offerings are being trimmed or withdrawn altogether,” says CBRE.


Inside The Story

CBRE’s LaRusso

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).