Microsoft cuts real estate spending again: seeking to sublease New York's Times Square office

According to news in the morning of June 8, Beijing time, Microsoft is reportedly seeking to sublease its office in Times Square in Manhattan. At present, large technology companies are starting to cut back on real estate spending.

Microsoft is looking for tenants for its more than 42000-square-foot (3900-square-meter) office at 11 Times Square, according to data released by real estate data firm CoStar. Microsoft declined to comment on the news.

Microsoft, which has been laying off staff recently, has also made other real estate cuts, including abandoning plans to build a new office building in London.

The adjustment in spending on real estate has added to the pressure on office owners, who have already encountered record vacancy rates and low demand.

This is a huge change for the technology industry, which used to be the main driver of the rental industry. Companies including Google's parent companies Alphabet, Meta and Amazon have announced plans to cut spending on real estate; Twitter and Spotify have also begun subletting their office space this year.