business
Manhattan sublease inventory falls below 11 million square feet
Sublease space in Manhattan dropped to less than half its late-2022 peak. Technology and AI companies accounted for most of the absorption through new leases signed in the first half of 2026.
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Manhattan sublease inventory fell below 11 million square feet in the second quarter, according to JLL data. The total is less than half the 23 million square feet recorded at the late-2022 peak. Landlords in some cases took back space from tenants to re-lease it directly at higher rents. The reduction in available sublease space coincided with continued leasing by AI firms.
AI leasing activity AI companies signed 21 leases totaling 719,200 square feet through the first half of 2026. The volume puts the sector on pace to match or exceed the 845,000 square feet leased in 2025. Several large transactions involved former sublease space.
An AI healthcare platform took 125,000 square feet at 345 Hudson Street that had been occupied by Google. A ride-hailing company added 86,000 square feet at 3 World Trade Center previously held by WPP. A Canadian bank leased 82,000 square feet at 151 West 43rd Street that had been occupied by a life-sciences firm.
An AI-driven financial advisory platform took 76,000 square feet at 3 Columbus Circle previously leased to a global marketing network. The advisory platform said the new space will house two AI units while it maintains existing offices elsewhere in Manhattan.
