News Summary
Manhattan’s office market has seen a remarkable increase in leasing activity, with over 3.7 million square feet leased in August. This surge is attributed to the return-to-office policies primarily from the tech sector, suggesting that demand for office space is rebounding significantly. Major companies like Deloitte and others have secured large leases, indicating confidence in the recovery of the commercial real estate market, despite past pandemic-related declines. With vacancy rates declining and asking rents rising, stakeholders remain optimistic about the future of office leasing in New York City.
New York—The Manhattan office market experienced a significant upswing in leasing activity in August 2025, with a more than 20% increase compared to the previous month, reaching a total of 3.7 million square feet leased. This surge in demand is closely linked to the return-to-office (RTO) policies implemented by various industries, especially within the technology sector. The August figures were also notable, being nearly 40% above the decade’s monthly average of 2.72 million square feet, as reported by Colliers.
As businesses urge employees to return to the office, demand for office space in New York is rising. Manhattan’s office leasing figures are on a trajectory that could see over 40 million square feet leased in 2025, marking the first time such numbers have been reached since 2019. This hopeful outlook follows a period during the pandemic when Manhattan saw a deficit of approximately 25 million square feet in leasing activity, considerably impacting the commercial real estate landscape.
The “Magnificent 7,” a term used to reference major tech companies such as Alphabet, Amazon, Apple, and Meta, are at the forefront of these RTO efforts. Leadership within these companies has begun to prioritize in-office work to boost productivity. Corporate policies are increasingly leaning toward mandated in-office attendance. For instance, Robinhood’s CEO has transitioned from a remote-first approach to requiring top executives to report to the office five days a week. Similarly, Microsoft is expected to tighten its regulations on remote work, while JPMorgan’s CEO insists on in-office work for most staff due to concerns surrounding effective communication. Amazon’s CEO emphasized the value of in-person collaboration and has instituted minimum in-office hours for employees.
Alongside the technological sector’s push, August 2025 also saw major leasing deals in Manhattan, with notable transactions involving Deloitte leasing 807,000 square feet and companies like WeWork, Piper Sandler Companies, and Cushman & Wakefield also securing substantial space. The legal sector is also making headlines, experiencing record leasing activity; 2023 saw over 4 million square feet leased, and the volume remains elevated beyond pre-pandemic levels.
In terms of financial metrics, the average asking rent for office space in Manhattan was $74.73 per square foot in August 2025, reflecting a 1% increase from July. Notably, the overall availability of office space in the area has declined to 15%, the lowest rate observed since January 2021. Newly constructed office buildings enjoy even lower availability, at just 6.7%, while older prewar buildings have availability rates at 17%.
Concerning the broader market dynamics, nearly 9 million square feet of office space has been withdrawn from the Manhattan market for conversion since 2021. This conversion trend is impacting both supply and pricing within the office market. Statistically, for every million square feet of space slated for conversion, around 270,000 square feet of leasing activity typically arises as tenants set out to relocate.
Despite the ongoing challenges posed by the lingering effects of the pandemic, the rising leasing numbers in August demonstrate a positive shift in the Manhattan office market. If current trends persist, stakeholders anticipate a continued recovery, bringing optimism to the commercial real estate sector in New York City.
Deeper Dive: News & Info About This Topic
- CNBC: Manhattan Office Leasing on Track to Hit Highest Volume Since 2019
- Wikipedia: Commercial Real Estate
- Commercial Observer: Midtown South Strong Manhattan Office Leasing
- Google Search: Manhattan office leasing
- New York Post: Manhattan Office Leasing Poised for Its Best Year Since 2019
- Google Scholar: Manhattan office market
- Crain’s New York: Manhattan Office Market Sees Strong August Numbers
- Encyclopedia Britannica: Office Leasing
- Fortune: Manhattan’s Offices on Track to Be as Busy as Pre-Pandemic Years
- Google News: Manhattan office market 2025
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
