Strong start to 2025 for Manhattan class B leasing activity

Post-pandemic, occupiers have placed significant demand on high-quality buildings resulting in decreased activity in the lower end of the market. However, as the supply of trophy and class A office space decreases, we are seeing an uptick in leasing activity in the class B market.

Year-to-date, Manhattan class B leasing activity has already surpassed the Q1-Q2 post-pandemic average of 4.3 msf. With one month left in the second quarter we have reached 4.9 msf, tracking to be the strongest level since 2019.

Additionally, the class B availability rate dropped to 16.9% in Q2 2025 - down 13.5% from year-end 2024. In the coming months, we anticipate this rate decreasing further and ultimately reaching pre-pandemic levels.