Manhattan Office Market Rebounds as Sublease Availability Falls Below Pre-Pandemic Levels
Source: http://Thrillist.com
Manhattan’s long-feared sublease “glut” has sharply reversed. Sublease availability fell to 11.8 million square feet in Q3 2025 — below 2019 levels and down from a peak of 23 million in early 2023, according to Transwestern. Despite predictions that skyrocketing subleases would cripple the office market post-COVID, demand has strengthened. Major absorption deals, including BlackRock taking 193,000 square feet from Meta and Robinhood securing 125,400 square feet at 2 Penn, fueled the decline. Paramount Global also pulled 92,500 square feet off the market. Analysts say the drop reflects expanding tenants and companies opting to retain space, signaling renewed momentum in Manhattan’s office sector. Steve Cuozzo, Sublease crisis winding down in latest sign of NYC office recovery (Nov. 16, 2025), https://nypost.com/2025/11/16/business/sublease-crisis-winding-down-in-latest-sign-of-nyc-office-recovery/.
Tags: BlackRock, commercial property, CRE Trends, Hudson Yards, Leasing Activity, Manhattan Office Market, market recovery, NYC Commercial Real Estate, NYC Office Space, nyc real estate, Office Leasing, Office Subleases, Paramount Global, Sublease Availability