The AI Company Effect on the New York City Office Market
Despite persistent narratives that artificial intelligence would decimate the workforce and hollow out urban centers, the data in New York City suggests the exact opposite. AI-related companies are not just backfilling space; they are becoming a primary engine for the resurgence of the Manhattan office market.
Since the start of 2025, the market has seen 85 transactions from AI-sector firms, totaling over 1.7 million square feet. Perhaps most telling is that the majority of these companies were non-existent 5-10 years ago. This shift highlights the continuous evolution in New York’s corporate DNA: the city is not just a financial capital, but a global hub for the next generation of tech talent that prioritizes high-quality, in-person collaboration.
Midtown South: The Tech Magnet
Midtown South has emerged as the clear winner of this trend. In 2025, the submarket recorded its strongest leasing year in a decade, with 8.2 million square feet of activity—effectively surpassing pre-pandemic benchmarks. This surge in demand has forced the vacancy rate down significantly, dropping from 22.7% to 18.3% in just twelve months.
Notable AI Office Transactions (Sorted by Size)
The following table details key transactions that have shaped the market over the past year.
| Company | Location | Square Footage |
|---|---|---|
| Figma | 27 W 23rd Street | 102,000 |
| Harvey AI | 1 Madison Avenue | 92,663 |
| Snowflake Computing | 7 Times Square Tower | 82,505 |
| Elise AI | 401 Fifth Avenue | 81,876 |
| Scale AI | 1 World Trade Center | 79,118 |
| Notion | 75 Varick Street | 76,140 |
| Sigma Computing | 1 Madison Avenue | 64,077 |
| Adaptive Security | 120 Broadway | 51,220 |
| AlphaSense | 441 Ninth Avenue | 50,319 |
| Cadent | 2 Park Avenue | 50,017 |
| Nagarro | 195 Broadway | 41,982 |
| CoreWeave | 33 Whitehall Street | 34,842 |
| Tabs | 233 Spring Street | 30,668 |
| ExlService Holdings | 320 Park Avenue | 30,194 |
| Elise AI (Expansion) | 401 Fifth Avenue | 27,371 |
| Modal Labs | 161 Avenue of the Americas | 27,334 |
| Legora | 836 Broadway | 27,238 |
| Sigma Computing | 386 Park Avenue South | 26,242 |
| Confidential | 520 W 20th Street | 26,176 |
| Graphite | 148 Lafayette Street | 24,829 |
| Confidential | 360 Park Avenue South | 23,038 |
| Rogo Technologies | 360 Park Avenue South | 23,038 |
| Confidential | 360 Park Avenue South | 23,038 |
| Outbrain | 111 W 19th Street | 23,000 |
| Abridge.com | 114 Crosby Street | 22,882 |
| Cyera | 1375 Broadway | 22,563 |
| Siro Technologies | 50 W 23rd Street | 20,489 |
| Agentio | 295 Fifth Avenue | 19,396 |
| Tennr Inc | 275 Seventh Avenue | 18,810 |
| Bluefish AI | 315 Park Avenue South | 17,050 |
| Brellium | 475 Park Avenue South | 16,125 |
| Distyl AI | 135 Madison Avenue | 15,038 |
| Parloa | 1245 Broadway | 14,731 |
| Sierra Technologies | 375 West Broadway | 14,563 |
| Confidential | 60 Hudson Street | 13,828 |
| Accrete | 17 State Street | 13,757 |
| AirOps | 218 W 18th Street | 13,504 |
| Wunderkind | 1 World Trade Center | 13,286 |
| Cinder Technologies | 100 Crosby Street | 12,909 |
| Baseten Labs | 215 Park Avenue South | 12,660 |
| Keystone Strategy | 148 Lafayette Street | 12,315 |
| Aircall | 44 W 28th Street | 12,083 |
| Hex Technologies | 250 Park Avenue South | 11,993 |
| Assembled | 245 W 17th Street | 11,592 |
| ElevenLabs | 40 Crosby Street | 11,592 |
| Ziphq | 245 W 17th Street | 11,592 |
| Series AI | 530 W 25th Street | 11,589 |
| Formagrid (Airtable) | 114 Crosby Street | 11,441 |
| Amelia | 250 Vesey Street | 11,161 |
| Fluidstack | 780 Third Avenue | 10,924 |
| Actively AI | 30 W 21st Street | 10,562 |
| Persuit | 48 W 25th Street | 10,260 |
| Peregrine Technologies | 100 Fifth Avenue | 9,505 |
| Polimorphic | 1 World Trade Center | 9,499 |
| Amperity | 19 Union Square West | 9,233 |
| LangChain | 220 Fifth Avenue | 9,078 |
| Confidential | 119 Fifth Avenue | 8,573 |
| Confidential | 416 W 13th Street | 8,506 |
| Decagon AI | 61 W 23rd Street | 8,367 |
| Perplexity AI | 853 Broadway | 8,013 |
| Feedzai | 2 Penn Plaza | 7,777 |
| Augmented Reality Concepts | 568 Broadway | 7,554 |
| Alaffia Tech Solutions | 446 Broadway | 7,462 |
| Forge Growth Infrastructure | 430 West Broadway | 7,400 |
| Prepared 911 | 101 Fifth Avenue | 7,080 |
| Hightouch.io | 150 W 22nd Street | 6,900 |
| Thinking Machine | 915 Broadway | 6,703 |
| GovDash | 920 Broadway | 6,500 |
| Knit | 1441 Broadway | 5,950 |
| Hedra | 22 W 21st Street | 5,600 |
| Laurel AI | 2 Gansevoort Street | 5,211 |
| Ironclad | 55 W 21st Street | 5,000 |
| Sola Solutions | 30 Vesey Street | 4,826 |
| Haize Labs | 74 Broad Street | 4,679 |
| Confidential | 157 W 18th Street | 4,609 |
| Melius AI | 205 W 28th Street | 4,595 |
| DataDome Solutions | 72 Greene Street | 3,940 |
| DataDome Solutions (Addl) | 72 Greene Street | 3,940 |
| Agentsmyth | 32 Old Slip | 3,637 |
| Unily | 160 Mercer Street | 2,800 |
| Nomic AI | 37 W 17th Street | 2,500 |
| Fleetline AI | 180 Varick Street | 2,335 |
| Confidential | 150 E 52nd Street | 2,257 |
| HeadstartAI | 584 Broadway | 2,207 |
If you would like more information on this topic or have a specific requirement, please
feel free to reach out to me.
Paul Walker
Senior Vice President
212-984-7117
Paul.Walker@cbre.com
About the Author
Paul Walker
As a commercial real estate broker specializing in all facets of office leasing for over 30 years, I’m also a proud native New Yorker with a deep love for this city. My commitment to my community is reflected in my founding of two real estate charity events and consistent involvement in professional organizations. Outside of work, I enjoy live music, movies, basketball, tennis, podcasts, and a continuous pursuit of knowledge, especially regarding history and the fascinating story of New York.