- Office leasing in Manhattan reached 11.8M SF in Q1 2026, the best first quarter since 2014.
- Bank of America’s 2.4M SF Midtown renewal drove over 20% of quarterly volume.
- AI-related tenants leased more than 600,000 SF, on pace to top 2025 totals.
- Availability rate dropped to 13.7%, continuing two years of tightening.
Leasing Activity Rebounds
Manhattan’s office leasing market started the year slow but picked up speed to reach its strongest first-quarter performance in more than a decade, reports The Real Deal. Firms signed 11.8M SF of leases in Q1 2026, according to Colliers. That’s a 3.4% year-over-year increase, with average asking rents rising 4% to $77.55 PSF from a year ago.
Key Deals and District Breakdown
Bank of America’s 2.4M SF renewal at 1 Bryant Park accounted for over one-fifth of all leasing—without it, volume would have dropped closer to 9M SF. Midtown dominated activity, capturing 57% of deals, and saw asking rents climb to $84.74 PSF. Law firm Gibson, Dunn & Crutcher also renewed for 361,600 SF at 200 Park Avenue. Midtown South accounted for 34% of activity; its biggest deal was Ramp’s 285,300 SF lease at 28-40 West 23rd Street.
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AI and Tech Leasing Momentum
Leasing by AI-related companies exceeded 600,000 SF, already outpacing the 2024 yearly total. It will likely surpass last year’s total. At the same time, finance and tech firms continue to dominate leasing activity nationwide, reinforcing their role as primary drivers of office demand. Major AI deals included Clay’s 163,000 SF lease at 11 Madison Avenue. Tech leasing remained strong in Midtown and Midtown South.
Market Trends and Outlook
Leasing velocity typically slows from Q4 to Q1, but ongoing office-to-residential conversions, including the removal of 750,000 SF at 750 Third Avenue, are contributing to a tighter market. Availability dropped to 13.7%, the lowest in two years. While experts say repeating 2025’s record 15M SF of absorption will be tough, demand across high-performing submarkets and the influence of the tech sector are supporting ongoing stability in Manhattan office leasing.
