Manhattan Real Estate Market Reports

Manhattan Office Market

Available space has declined six consecutive quarters, falling 17.5 MSF since 1Q24 and lowering the availability rate from 19.5% to 16.0%. Third quarter recorded 10.7 MSF of leasing, with YTD activity up 17.6% from the same period last year. The three quarters with the highest amount of leasing since 2020 have been recorded within the past 12 months. Manhattan class A direct rents have risen 11.5% from the post-pandemic low. Midtown trophy assets continued to outperform the overall market as direct availability within the set declined to 4.6%. At 27.3 MSF, active tenant requirements are 17.2% above the 2019 quarterly average. Minimal new construction deliveries are expected in the next few years before adding more than 10.0 MSF by 2032. 14.2 MSF has either commenced conversion or is planning to do so, following 3.7 MSF of buildings converted since 2020.