Sublease Availability Ticks Down Despite New Supply

The amount of Manhattan office space on the sublease market is falling — but that doesn't necessarily mean tenants are moving back in.

Unsplash/Raj Rana

Many leases are simply expiring without finding new occupants. Less than half of sublease spaces nail down replacements, and spaces commonly sit on the market for over a year, according to a fourth-quarter report from Savills.

Plus, large occupiers including Google, NYU and McGraw-Hill Education continue to rearrange their real estate portfolios, adding to availability.

— Sasha Jones and Ciara Long

Today's Rundown

Bruce Teitelbaum's Harlem Development Again Hit With Community Pushback: Last year, Bruce Teitelbaum returned to Harlem with renewed hope that a friendlier city council would allow him to build the housing project that has long faced criticism. But his One45 development is still facing backlash from the local community. Read more.

New York City Seeking New Plans For Former Amazon HQ2 Site: New York City is looking for a new future for the Queens site that was once slated to become a corporate headquarters for e-commerce and tech behemoth Amazon. Read more.

TF Cornerstone Targeting Distress As It Deploys $1B Office Conversion Fund: Two months after launching a $1B venture targeting office-to-residential conversions, TF Cornerstone and Dune Real Estate Partners have already identified three buildings to turn into apartments. Read more.

Public Review For Ken Griffin’s Park Avenue Skyscraper Poised For Kickoff: The planned 62-story office tower that Griffin is building with Rudin and Vornado at 350 Park Ave. is set to start its public review process next month. Read more.

What Else Is Happening?

Office Attendance Hits Postpandemic High

Los Angeles Convention Center Revamp Jeopardized By Fire Recovery

Developers Plan $850M Condo-Hotel Supertall In Downtown Miami

Ski Resort Owners Pursue Huge Mixed-Use Projects As Demand Grows

The Finish Line

Here’s some good office news: Prime office space in Midtown is the third-priciest in the world. The neighborhood falls just below London’s West End and Hong Kong, according to another report by Savills.

Among the three, it is the only one where net effective costs for occupiers are rising.

What new leases are rolling in? We’d love to hear about them — and are happy to keep anonymity.

The New York City Rundown is written by New York Reporters Sasha Jones and Ciara Long and edited by Deputy Managing Editor Ethan Rothstein. We’d love your feedback and news tips: sasha.jones@bisnow.com and ciara.long@bisnow.com.

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