New York is doing better than San Francisco — Manhattan has a vacancy rate of 13.5 percent — but it can no longer count on the technology industry for growth.
More than one-third of the roughly 22 million square feet of office space available for sublet in Manhattan comes from technology, advertising and media companies, according to Newmark.
The company has opted not to renew leases covering 250,000 square feet in Hudson Yards and for 200,000 square feet on Park Avenue South.
Twitter, Microsoft and other technology companies are also trying to sublease unwanted space.
The large amount of space available for sublet is also driving down the rents that landlords are able to get on new leases.
Persons:
Newmark, ”, Ruth Colp, Haber, Colp
Organizations:
sublet, New, New York State, Spotify, Trade Center, Twitter, Microsoft, Wharton Property Advisors
Locations:
York, Francisco —, Manhattan, New York, Hudson Yards