As if the city’s office leasing market needed any more negative news, Pfizer and JPMorgan are seeking to sublet nearly 325,000 square feet of Midtown office space, Crain’s reported, adding more to the city’s oversupply of space.
Pfizer is consolidating its operations into the two properties it owns at 219 and 235 East 42nd Street, so it’s tapped Cushman & Wakefield to market 274,000 square feet it rents at 150 East 42nd Street.
Meanwhile, JPMorgan is seeking a subtenant for its 50,000 square feet at 277 Park Avenue because it was able to move more operations into its headquarters at 270 Park Avenue after a renovation increased its capacity by 26 percent.
Crain’s noted that these developments aren’t necessarily huge setbacks, as the 5 million square feet of sublease space available is less than half of the 11.8 million-square-foot supply during the depths of the recession. Still, commercial leasing already fell 48 percent in Midtown in the first two months of the year, and this doesn’t help the stagnant market. [Crain’s]