NYC Office Leasing Hits 22.8 Million SF, Driving Availability to 13%

2 articles · Updated · Bisnow · Jul 1

22.8 million square feet of office leases were signed in New York City in the first half, including 11 million in Q2, putting the market on pace for its busiest year since 2000.
13% availability at the end of Q2 marked the city’s lowest level since October 2020 as leasing accelerated and more than 900,000 square feet was removed for conversions.
5.7% year-over-year rent growth lifted average asking rents to $78.03 per square foot, while Midtown buildings built after 2000 tightened to 6.7% availability and Park Avenue rents reached $120.
Law firms remained the main demand engine—led by Simpson Thacher’s 916,000-square-foot prelease—while AI companies leased 800,000 square feet in Q2 and 1.5 million year to date, double all of 2025.
That mix of stronger demand and shrinking supply is shifting leverage back to landlords, with the gap between asking and taking rents already narrowing to 6% in Q1 from 10% in 2024.

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Bisnow6d ago

NYC Office Market Records Best First Half Since 2002 with 22.8M SF Leased

Yahoo Finance6d ago

NYC Office Leasing Hits Best First Half Since 2002

As landlords regain control and conversions shrink supply, are mid-sized businesses being permanently priced out of the Manhattan office market?

With AI firms leasing spaces 60% larger than needed, is NYC's office boom built on sustainable growth or a speculative tech bubble?

Can NYC's aging power grid handle the energy demands of the AI boom that is fueling its commercial real estate recovery?

Manhattan Office Market Recovery 2026: 80% of Leases Are New or Expansions as Tech and AI Lead Demand

Overview

In the first half of 2026, the Manhattan office market saw a strong rebound, with demand rising and large leases increasing. This growth was driven by a major shift in tenant behavior, as companies moved away from simply renewing or downsizing and instead began actively expanding and acquiring new office space. Lease renewals dropped sharply, while new and expansion leases made up the majority of activity. This change reflects greater tenant confidence, as businesses now have better visibility into their future and are adding space. The surge in demand is led by financial, insurance, real estate, technology, and law firms, marking a new phase of market growth.

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