Manhattan Office Market
Available space has declined seven consecutive quarters, falling 22.4 MSF since 1Q24 and lowering availability from 19.5% to 15.0%. Office leasing tallied 42.8 MSF in 2025, the third highest recorded annual total in the past 20 years and 9.7% higher than one year ago. Fourth quarter recorded 10.7 MSF of leasing activity driven by 16 transactions signed for greater than 100,000 SF each. At 4.8 MSF, absorption closed the year positive for the first time in over a decade as strong leasing drove market fundamentals. Direct availability in Midtown trophy assets dropped sharply to 3.7%. Available space within the trophy set has not registered a quarterly rise since 1Q23. Rental rate recovery continued in 4Q25 as overall Manhattan asking rents grew $0.79/SF with Midtown class A rents 5.7% higher than the 1Q20 average. Fourteen of the nineteen Manhattan submarkets recorded year-over-year asking rent increases. 15.5 MSF has either commenced conversion or is planning to do so, following 3.9 MSF of buildings converted since 2020.