Tech is driving Manhattan office leasing activity, but not lease duration
Lease duration by sector (months)
- Tech leasing activity increased meaningfully in 2025, with the sector’s share of Manhattan leasing rising from 9% to 15% year-over-year. This shift reflects a clear re-engagement from tech tenants, even as leasing patterns continue to vary materially across industries.
- While activity has picked up, tech tenants are still signing the shortest lease terms among major sectors. As of January 2026, the 12-month moving average lease term for tech was 81.2 months, compared with 104.1 months for media and telecom, 106.4 months for banking and finance, and 127.7 months for law firms.
- Together, these trends point to a change in how tech tenants are approaching real estate decisions. Rather than extending lease duration, tech firms are maintaining a focus on flexibility, reinforcing the need for industry-specific benchmarks when evaluating leasing strategy heading into 2026.
February 23, 2026
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