- AI leasing by Harvey AI and Clay pushed SL Green’s trophy assets to 100% occupancy.
- SL Green expects over 900,000 SF of leasing in Q1 2026, a company record.
- AI-related office demand counters fears of workplace shrinkage in New York City.
- Tech and AI tenants now account for an increasing share of Manhattan leasing.
AI Leasing Lifts Occupancy
According to CoStar, SL Green Realty secured two major AI leasing deals in Manhattan. The agreements filled space at One Madison Avenue and 11 Madison Avenue. As a result, both office towers reached full occupancy.
Harvey AI expanded its presence at One Madison Avenue by 92,663 SF. The expansion increased the company’s total footprint in the building to 185,326 SF. Meanwhile, AI sales firm Clay signed a 10-year lease at 11 Madison Avenue. The company committed to 163,095 SF in the office tower.
With the latest AI leasing activity, SL Green is on pace for its strongest first quarter ever, projecting over 900,000 SF in office lease volume.
Record First Quarter for Office Leasing
The One Madison Avenue redevelopment now boasts a fully leased status and top-tier amenities, including chef-driven dining and a fitness center. At 11 Madison Avenue, Clay joins a roster of household names, bringing the 2.3M SF block-filling tower to 100% leased. Both AI leasing agreements reflected robust asking rents, cited at $120 PSF and $90 PSF respectively.
SL Green reports that two-thirds of its portfolio will reach a weighted average leased occupancy of 98% or above by end of 2026. Nearly 500,000 SF of office leases were signed in the first two months of 2026 alone. The surge in AI-driven leasing also mirrors broader tech demand supporting office recoveries in other major markets, including San Francisco.
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AI-Driven Demand Counters Market Fears
Despite concerns that AI could reduce office demand, recent leases show strong appetite from fast-growing sectors. In New York, several AI firms continue expanding their office footprints. SL Green CEO Marc Holliday said companies still compete for top talent driving innovation, especially in artificial intelligence. He added that companies cannot easily replace this talent with technology alone.
Recent industry data supports this trend. Tech and AI firms accounted for 15% of Manhattan leasing volume in 2025. That share rose sharply from 9% the previous year. As a result, technology demand has helped support the city’s office recovery. For example, EliseAI signed a 109,000-SF lease after securing a major funding round.
What’s Next
AI leasing is expected to continue supporting New York’s office sector, as technology and innovation-driven firms expand their presence. Market observers note that fears of AI-driven downsizing are misplaced, and the ongoing flight-to-quality will benefit well-located, amenity-rich assets like those in SL Green’s portfolio.
