New York office market report
Q3 2025
Manhattan leasing activity hit 30.2 million square feet through the first three quarters of 2025, with a broad mix of industries fueling demand and a rise in large deals. Availability dropped to 15.8%—the lowest in over four years—as both direct and sublet space declined. Over the past four quarters, trophy leasing volume has surged to 36.0% above the pre-COVID average, highlighting the sustained demand for high-qulaity office space.
Leasing activity in 2025 reached its highest total YTD since 2018
2025’s leasing activity through three quarters has reached 30.2 million square feet (msf); 9.2% higher from a year ago.
The number of 100k+ square feet (sf) transactions year-to-date (YTD) reached the highest total since 2018 with 40 transactions. This increase in leasing activity has been led by the banking, finance, insurance & real estate industry, which has accounted for just over a third of all activity this year.
Manhattan availability rate hits lowest value since 2020
Manhattan’s overall availability rate of 15.8% in Q3 2025 marks the lowest availability rate in over four years. Year-over-year, the overall availability rate dropped by 290 basis points (bps) from 18.7%. This drop came from a decrease in both direct and sublet available space, which currently sit at 67.1 msf and 13.9 msf, respectively.
When accounting for the desirability of space quality, which includes factors like potential conversions, property classifications, and other mitigating elements, the availability rate drops even further.
Growth in trophy leasing over pre-COVID average (2015-2019)
Despite overall office leasing continuing to recover to pre-COVID levels, the trophy segment of the market is outperforming historical norms. Over the last four quarters, trophy leasing in Manhattan is 36.0% higher than the pre-COVID average (2015-2019, rolling four quarters).
Class A product remains 4.5% below pre-COVID levels but has grown in recent quarters as availability in Trophy assets shrinks.
Class B/C leasing, which was already falling in the years leading up to the pandemic, sits 21.1% below the pre-COVID average.
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