NYC Office Leasing Shows Strong Start to 2025

Office leasing in New York City experienced a significant upswing in the first quarter of 2025, building on the momentum gained in the fourth quarter of 2024. This positive trend marks a notable recovery compared to the slower pace observed since the pandemic.

➡️ For more on the recent surge in Manhattan leasing activity, see The NYC Real Estate Market is Improving. Is now the Time to Act?.

Five key statistics highlight the strength of leasing activity in Q1 2025:

• Year-to-date leasing activity increased by 59% compared to Q1 2024.
• Net absorption was a positive 3.00 million square feet in Q1 2025.
• Total leasing activity reached 7.78 million square feet in Q1, representing 57% of the five-year quarterly average.
• The availability rate decreased by 50 basis points from the previous quarter and was down 210 basis points year-over-year.
• Q1 2025 marked the fourth consecutive quarter of rising leasing demand.

Despite this robust leasing activity and demand, Manhattan still faces an oversupply of office space. This is largely due to tenants increasingly seeking higher-quality properties with modern amenities, creating a competitive challenge for older, less renovated buildings. (See my blog post on conversions for more information.)

➡️ For more on how conversions are impacting the NYC office market, read The Latest on Manhattan Office Conversions: A New Era for NYC Real Estate.

For more detailed statistics on specific submarkets, please feel free to contact me at 212-984-7117 or Paul.Walker@cbre.com