Manhattan workplace rents hold climbing.
The borough’s common asking hire climbed to $78.03 per sq. foot within the second quarter, its highest degree since July 2020 and simply shy of the March 2020 common of $79.47, in line with a brand new Colliers report. Asking rents rose 5.7 % over the previous 12 months, the sharpest midyear enhance since 2016, as massive blocks of lower-priced house disappeared from the market and landlords commanded prime greenback for the large blocks of house coming on-line.
The hire good points come as Manhattan’s workplace market continues to tighten after two years of regular restoration. The supply price fell to 13 % within the second quarter, down from 13.7 % in March and marked the ninth consecutive quarter during which availability both declined or held regular, in line with Colliers.
Tenants inked offers for 11 million sq. toes through the second quarter, down about 6.5 % from the primary quarter however up about 19 % year-over-year. The primary half of 2026 logged 22.8 million sq. toes of leasing, the strongest first-half efficiency since 2002. If that tempo continues by the tip of the 12 months, Manhattan would document its busiest leasing year since 2000, per Colliers.
Sublet house shrunk by 22 % over the past 12 months to about 9 % beneath pre-pandemic ranges.
The quarter’s largest lease was Simpson Thacher & Bartlett’s 916,000-square-foot deal at Extell Growth’s 570 Fifth Avenue, adopted by L’Oréal’s 484,000-square-foot renewal at Associated Firms’ 10 Hudson Yards and Cleary Gottlieb Steen & Hamilton’s 476,000-square-foot lease at Brookfield Properties’ 1 Liberty Plaza.
Class A buildings captured almost 69 % of leasing exercise. The substitute intelligence sector additionally continued to snap up house within the second quarter, leasing roughly 800,000 sq. toes. That surpassed the 790,000 sq. toes AI firms leased throughout all of final 12 months.
In the meantime, workplace funding gross sales confirmed indicators of stabilization. Manhattan recorded 15 workplace transactions totaling $1.4 billion through the quarter, matching final 12 months’s quantity, although the median worth dipped to $50.5 million, down from $56 million year-ove-year, per Colliers.
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