Brooklyn Office Availability Hits Lowest Level in Nearly a Decade
Major leases and shrinking inventory are reshaping Brooklyn’s office market.
Nina Dale
August 25, 2026
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Good morning. Brooklyn’s office market gained momentum in Q2 as leasing more than doubled to 379,000 square feet and availability fell to 17.2%, its lowest level in nearly a decade. However, asking rents remained under pressure, declining 12% year over year to $47.61 per square foot.
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Market Snapshot
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Brooklyn Momentum
Brooklyn Office Availability Hits Near-Decade Low
Brooklyn’s office market is gaining momentum as major leases and space removals push availability to its lowest level in nearly a decade.
Leasing activity surges: Q2 leasing more than doubled from Q1 to 379,000 square feet, marking a 61% increase over the five-year average. Nonprofits accounted for 69% of total leasing, making the sector a major driver of activity.
Major deals lead the way: Brooklyn Defender Services signed the quarter’s largest lease, taking 209,208 square feet at 181 Livingston Street. The organization also leased another 15,170 square feet nearby, while Rising Ground signed for 20,500 square feet at 111 Livingston Street.
Availability tightens: Brooklyn’s availability rate dropped 320 basis points year over year to 17.2%, its lowest level in nearly a decade. Strong leasing and the removal of obsolete office inventory helped drive the improvement, while net absorption reached 673,000 square feet.
Rents still struggle: Asking rents fell 12% from a year earlier to $47.61 per square foot, marking the fourth consecutive quarterly decline. The large lease at 181 Livingston Street was a key factor, although the removal of below-market space at 250 Livingston Street helped offset some of the pressure.
Brooklyn gains ground: Brooklyn remains well behind Manhattan in overall leasing volume, but its improving fundamentals are strengthening its position as a secondary New York office market. The continued absorption of available space could create a path toward future rent growth.
➥ THE TAKEAWAY
Momentum before rent growth: Brooklyn’s office market is showing meaningful signs of recovery, with leasing activity accelerating and availability tightening. Rents remain under pressure for now, but if demand continues to build, the borough could become an increasingly compelling opportunity for investors.
Around New York
➥ New York has overtaken San Francisco as the top U.S. tech talent market, fueled by rapid AI job growth that is boosting office demand across major innovation hubs.
➥ NYC targets 700,000 new homes over a decade, with 350,000 planned in five years for low-growth neighborhoods to help ease the city’s severe housing shortage and expand affordability.
➥ Whole Foods signed a 15-year lease for a 9,000 SF Daily Shop at 509 Third Avenue in Murray Hill, adding another small-format Manhattan location to its growing urban retail footprint.
➥ American Strategic Investment Co. faces potential bankruptcy within a year as defaults, falling occupancy and a $140M loan tied to 123 William St. strain its finances.
Follow the Money
| OFFICEMANHATTAN Fisher Brothers is seeking $100M in Israeli bonds to buy JPMorgan’s 49 percent stake in 605 Third Avenue while funding capital improvements, leasing costs and working capital. |
| INDUSTRIALSTATEN ISLAND Dov Hertz’s Kadima Industrial Partners sold a fully leased, 53-acre Staten Island industrial site to Jadian Capital for $167M, more than doubling its roughly $89M acquisition and improvement basis. |
| OFFICETIMES SQUARE Comcast signed a 141,000 SF lease at 1540 Broadway, consolidating operations as the revamped Times Square tower attracts major tenants seeking modern, amenity-rich office space. |
| RETAILQUEENS Principal Financial Group provided $32M to refinance Springnex Plaza, a fully occupied 96,028 SF Queens shopping center anchored by Stop & Shop. |
| RESIDENTIALWEST CHELSEA T&E Development bought a West Chelsea site for $33.5M, with plans for a residential project amid strong condo pricing and limited new supply in the neighborhood. |
📈 CHART OF THE WEEK
NYC rents show a striking divide across neighborhoods, with the highest asking rents concentrated in Manhattan’s core and select Brooklyn areas, while lower rents become more prevalent farther from the city’s most expensive hubs.
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