- Midtown office sublease leasing activity has been driven by FIRE tenants, which accounted for 45.3% of subleasing activity since 2023, the highest share of any industry across the three markets. With 1.5 msf of YTD activity and only 2.1% sublease availability, Midtown continues to show the strongest sublease market with consistently strong tenant demand.
- Midtown South remains the most tech-driven sublease market, with technology tenants representing 51.7% of subleasing activity since 2023, far above Midtown’s 17.3% and Downtown’s 37.7%. Even as available sublease supply has compressed to 1.78 msf, or 2.1% of inventory, tech tenants continue to account for more than half of the Midtown South activity.
- Downtown has the highest sublease availability at 3.4%, or 3.32 msf, yet YTD activity trails Midtown and Midtown South at 450 ksf. Industry activity is more evenly split, with tech at 37.7%, FIRE at 28.8%, and other industries at 33.5% of subleasing activity since 2023, reflecting a broader tenant mix despite elevated supply.
- For tenants, submarket selection increasingly means choosing an industry ecosystem, not just a location. The concentration of FIRE activity in Midtown and technology activity in Midtown South suggests companies continue to value proximity to peers, talent, and business networks when evaluating sublease opportunities.
