Microsoft subleasing office space in Midtown

In a move that reflects Microsoft's efforts to streamline its office usage, the tech giant has made available for sublease 42,000 square feet of office space at 11 Times Square. They will continue to occupy other floors in the building and likely absorb employees into those offices. 

The Microsoft sublease is part of a broader trend in Manhattan, where tech companies are increasingly subleasing large blocks of office space. Microsoft is one of many large tech companies that have listed office space for sublease in recent months. Many companies are finding that they need less office space, with more and more adopting hybrid work models. The trend will likely continue as the work landscape evolves.

A complete rebound of the office space market in Midtown is unlikely in the near future, but it's safe to assume that more companies will continue to consolidate their teams and list their excess NYC office space. 

As more companies adopt or solidify a hybrid work model, the result will be that these tech firms will occupy less office space than they did before the pandemic. The additional inventory could lead to lower rents for office space in Midtown.