Where Do NYC Rents Stand Post Covid 2025?

As like most things in life there are a lot of nuances in this answer and the statistics.  Unlike the past two market downturns which occurred after the dot.com bubble and the financial crisis, the average asking rents per the market stats did not decline as significantly.

Midtown 2019 – Average Asking Rent:  $86.35

Midtown 2025 – Average Asking Rent: $82.13

Percentage Decline: 5%

Midtown South 2019 – Average Asking Rent:  $84.67

Midtown South 2025 – Average Asking Rent: $84.01

Percentage Decline: 1%

Downtown 2019 – Average Asking Rent:  $63.10

Downtown 2025 – Average Asking Rent: $57.11

Percentage Decline: 10%

By looking at these numbers its easy to deduce that the market has not changed significantly.  However, there is way more to the story. Here are 3 key things to note:

1. The stats are a weighted average, meaning the asking rents in a larger building count more than the asking rents in a smaller building.  This is significant because the larger buildings include all the modern class A buildings which are typically the higher rent buildings.  The smaller side street buildings that are lower cost do not have the same statistical impact on the average asking rent numbers.  Post covid there has been a flight to quality, so the class A market has held up, while the B & C market has suffered.  The B & C buildings have dropped pricing considerably, but that price drop does not come across in the overall stats.
   
   ➡️ For insights into major leasing deals that have kept Class A rents stable, check out our post on The 15 Largest NYC Leasing Transactions of 2024.
   
   
2. The taking rent index in 2019 was 5% of the asking price.  Now it is 7% of the asking price.  This means that Landlords are more negotiable on top of a lower asking price.  Additionally, there is negotiability in the B & C commodity type buildings.  Once again, the stats don’t reflect the true nature of the final taking rents across the market. 
   
   ➡️ If you’re considering lease renewal strategies during this period of increased landlord flexibility, read our guide on Blend and Extend.
   
   
3. The most telling stat is what is called the NER, Net Effective Rent.  There has been a 28% decline in Net Effective Rent since 2019.  The NER is the actual dollars landlords are putting in their pocket after their deal costs.  So, if in 2019 a landlord put $50 in their pocket on each deal, in 2025 they are putting $36 in their pocket.  What is the reason for this sharp decline.  It’s all about the concessions.  Landlords are delivering higher quality spaces in an environment of increased construction costs, and landlords are giving more free rent.  Both factors have contributed to the landlords taking in far less money than pre-covid.  
   
   ➡️ For tenants navigating this environment and seeking new office spaces, learn about timelines and challenges in our post on How Long Does It Take to Find a New Office Space in New York City.
   
   

If you would like any market statistics or a more in depth analysis, please contact me at 212-984-7117 or Paul.Walker@cbre.com