NYC Office Comeback Surges, Foot Traffic Back Strong
Surge in Manhattan Leasing Activity In a striking recovery, Manhattan’s office leasing market has experienced a remarkable surge. Leasing momentum reached unprecedented levels, with activity hitting 20.6 million square feet in the first half of 2025. This is the highest first-half total since 2018. Diverse tenants are driving this growth. Major players in banking, finance, insurance, and real estate sectors collectively account for over a third of leasing activities in this period. Higher education institutions, like NYU, are also contributing notably. They are signing large, long-term master leases. In Q2 2025 alone, agreements totaled 8.4 million square feet. This marks the strongest quarterly total since 2019. With the availability rate at its lowest point since 2020, these figures project a robust year. There is potential to set the strongest leasing record since 2019. Expectations lean towards achieving 40 million square feet by year’s end. Evolving Vacancy Trends Across NYC Boro...