News Summary
Manhattan’s office leasing market has seen a remarkable rebound with 3.7 million square feet leased in August, marking a 20% increase from the previous month. This surge is significant as it represents the highest monthly leasing volume since 2021. The year-to-date total has reached approximately 27.3 million square feet, and projections suggest that Manhattan may surpass 40 million square feet for the entire year, a milestone not achieved since 2019. The market shows continued demand with a drop in availability rates and modest increases in rental prices.
New York City – Manhattan’s office leasing market experienced a strong surge in August 2025, with approximately 3.7 million square feet of office space leased, marking a 20% increase from July and significantly higher than the year-ago figures. This surge represents the highest monthly leasing volume since the same month in 2021 and exceeds the 10-year monthly average of 2.72 million square feet.
The growth in leasing activity pushed the year-to-date total to around 27.3 million square feet, with projections indicating that the borough is on track to exceed 40 million square feet of office leases for all of 2025. This would mark the first time that Manhattan has reached this milestone since 2019.
Availability Rates and Market Trends
In August 2025, the office availability rate in Manhattan dropped to 15%, the lowest it has been since January 2021, and illustrates a continual trend of stable or decreasing availability over the past 18 months. However, despite this decline, there remain approximately 79.5 million square feet of office space still available across the borough.
The average asking rent for office space in Manhattan saw a slight uptick, increasing to $74.73 per square foot in August 2025. This modest rise reflects ongoing demand in the market.
Notable Transactions
Several noteworthy lease transactions characterized the Manhattan office market in August. Among the largest was Deloitte’s acquisition of an 807,000-square-foot lease at 70 Hudson Yards, which ranks as the third-largest lease in the city for the year. Additionally, WeWork expanded its footprint with a lease of 259,000 square feet at 1440 Broadway, while Piper Sandler leased around 136,000 square feet at 1301 Sixth Avenue.
Smaller but significant leases included The Farmer’s Dog taking approximately 59,000 square feet at 568 Broadway and another WeWork expansion with 55,000 square feet at 245 Fifth Avenue.
Submarket Performance
Midtown South emerged as the most active submarket during August, leasing about 2.2 million square feet, a remarkable 64.8% month-over-month increase that more than doubled totals year-over-year. Availability in Midtown South decreased to 15.1%, while the average asking rent saw a slight rise to $79.21 per square foot.
In Midtown, about 1.3 million square feet were leased, representing a modest growth from July but a 7% decline year-over-year. The average rent for office spaces in Midtown rose to $80.07 per square foot.
Downtown Manhattan reported around 191,000 square feet in leasing for August, showing a decline compared to previous months and year-over-year figures, with an availability rate holding steady at 18.5%. The average asking rent in Downtown edged upwards to $59.28 per square foot.
Key lease transactions in Downtown included Pilot Fiber subleasing 42,000 square feet at 195 Broadway and the Police Benevolent Association renewing its 39,000-square-foot lease at 125 Broad Street.
Conclusion
The data from August 2025 reflects a robust resurgence in Manhattan’s office market, suggesting positive trends moving forward. With both leasing activity and rental prices on the rise, industry experts anticipate continued growth as companies adapt to post-pandemic work environments.
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Additional Resources
- CNBC: Manhattan Office Leasing
- Wikipedia: Office Space
- Commercial Observer: Midtown South Leasing
- Google Search: Manhattan Office Leasing News
- NY Post: Best Year for Manhattan Office Leasing
- Google Scholar: Manhattan Office Market
- Crain’s New York: Strong August Numbers
- Encyclopedia Britannica: Office Leasing
- The Real Deal: No Summer Slump
- Google News: Manhattan Office Market
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.
