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Manhattan Office Leasing Jumps in August, Putting 2025 on Pace for Best Year Since 2019

Availability has fallen to its lowest level since early 2021, signaling a firmer market.

Overview

  • Tenants signed 3.7 million square feet in August, more than 20% above July and roughly 36% above the 10-year monthly average, according to Colliers.
  • The overall availability rate reached 15%, the lowest since January 2021 and the 18th straight month of stability or tightening.
  • Midtown South led activity with about 2.2 million square feet, while Midtown logged roughly 1.3 million and Downtown slowed to about 191,000.
  • Average asking rent rose 1% month over month to $74.73 per square foot, still about 6% below March 2020, with new construction showing 6.7% availability versus 17% in prewar buildings.
  • Colliers says 2025 leasing could exceed 40 million square feet if current momentum continues, helped by nearly 9 million square feet removed through conversions and large deals such as Deloitte’s 807,000-square-foot lease and WeWork’s 259,000-square-foot commitment.