The Manhattan office market stayed hot in July as leasing exercise surged and obtainable house shrank to its lowest degree in practically six years.
Tenants inked offers for 3.87 million sq. toes, up 27 % from June and about 28 % year-over-year, based on knowledge from Colliers. The month pushed year-to-date leasing quantity to 26.6 million sq. toes, which the agency mentioned places 2026 on tempo for its strongest annual whole since 2000.
The regular demand continued to chip away at provide, which dropped to 66 million sq. toes, the bottom since September 2020. Midtown South accounted for practically half of all leasing exercise, led by Anthropic’s 466,000-square-foot lease at AEW Capital Administration’s 330 Hudson Road. Availability within the tech-heavy submarket tightened to 12.2 %, based on Colliers.
NBCUniversal’s 244,000-square-foot renewal at Rockefeller Group’s 1221 Sixth Avenue in Midtown was the second-largest lease within the report. And insurance and risk-management firm Aon inked a 202,000-square-foot renewal at Brookfield’s 1 Liberty Plaza within the month’s third-largest lease.
The 66.2 million sq. toes of accessible house is down greater than 32 % from the post-pandemic peak of 98 million sq. toes in February 2024 and 18 % from a 12 months in the past, based on Colliers.
Sublet provide, a key barometer of the workplace market’s well being, shrank by 700,000 sq. toes in July to its lowest degree since August 2019. Snap helped drive the decline with a 199,000-square-foot sublease at Vornado’s Penn 2. Midtown, Midtown South, and Downtown all recorded reductions in sublet stock.
In the meantime, asking rents held regular from the earlier month at about $78 per sq. foot, the very best in six years.
Learn extra
Anthropic finalizes Hudson Square 466K sf building lease as it grows in NYC
Aon is taking even more space at Brookfield’s One Liberty Plaza
Vornado can’t stop signing Penn 2 leases
