New York City tech startups are reacting to pandemic by subletting their spaces, breaking their leases and negotiating lower rents, according to the Wall Street Journal. Manhattan office leasing is on track to end the year at the lowest volume of the past 20 years, and tech-firm leasing has also slowed.
- By the numbers: More than 3 million SF of office space in Manhattan was put up for sublet in the third quarter, nearly half from technology, advertising, media and information companies.
- Property owners react: Two Trees Management and other landlords are now offering more-flexible terms to retain and attract tenants, and is now open to leases as short as one year or six months for startups, compared with its standard three-year agreements pre-pandemic. [WSJ]