Manhattan’s workplace market has hit a brand new excessive.
Class A common asking rents rose to $85.45 per sq. foot within the third quarter, surpassing pre-pandemic ranges and reaching an all-time excessive, in response to a brand new Colliers report. Tenants inked offers for simply over 10 million sq. toes within the third quarter. It was the fourth consecutive quarter with greater than 10 million sq. toes of leasing, a feat final achieved in 2002, per Colliers.
The market crossed two different restoration milestones. Midtown’s obtainable provide returned to its pre-pandemic degree, with slightly below 28 million sq. toes of obtainable area. And Midtown South had its strongest third quarter on file, pushed largely by know-how, promoting, media and data (TAMI) tenants.
Regulation agency Proskauer Rose inked the biggest lease of the quarter, a 478,000-square-foot renewal and growth at SJP Properties’ 11 Times Square, per Colliers. AI agency Anthropic’s full-building lease at AEW Capital Administration’s 330 Hudson Avenue was the second-largest deal, adopted by Havas Well being Community’s 254,000-square-foot expansion and extension at 200 Madison Avenue, the Midtown South tower owned by George Consolation & Sons, Loeb Companions Realty and Jamestown.
In the meantime, Manhattan’s availability fee fell 0.6 share factors in the course of the quarter to 12.4 p.c, marking the tenth quarter in a row that the speed both dropped or held regular. Complete obtainable area fell to the bottom degree since August 2020.
Class An area accounted for 73.3 p.c of third-quarter leasing, or 7.38 million sq. toes, regardless of making up 64.6 p.c of Manhattan’s stock. Thirty offers of greater than 5,000 sq. toes signed by means of the third quarter with asking rents above $200 per sq. foot, in response to the newest Colliers knowledge. That’s up from 20 such offers in all of 2025.
TAMI tenants accounted for 34 p.c of third-quarter leasing, whereas monetary providers, insurance coverage and actual property tenants made up 27 p.c. Synthetic intelligence companies alone leased a file 1.06 million sq. toes in the course of the quarter, nearly all of it — 960,000 sq. toes — concentrated in Midtown South.
Learn extra
Anthropic finalizes Hudson Square 466K sf building lease as it grows in NYC
Havas Health inks 254K sf expansion and extension at 200 Madison
Manhattan office availability shrinks to six-year low
