- Deloitte signed a $2.6B lease for 807KSF at 70 Hudson Yards, the priciest NYC office deal since the pandemic.
- Starr Cos. committed to a $1.3B, 20-year lease at 343 Madison Ave., supporting new construction activity.
- Midtown, Hudson Yards, and Penn District continue to post strong demand with availability rates tightening in key submarkets.
- Manhattan office leasing volume rose 37% in 2025, with vacancy dropping below 13% citywide.
Hudson Yards Drives Big-Box Leasing
According to Bisnow, Deloitte’s nearly 22-year, $2.6B lease at 70 Hudson Yards headlines Manhattan’s top office deals for 2025. The 807KSF pact—secured in partnership by Related Cos. and Oxford Properties—dwarfs previous post-pandemic commitments in the city, reflecting a strong appetite for trophy-class towers even amid slow construction timelines. Move-in at the new Hudson Yards building is slated for late 2028.
Midtown, Penn District, and Trophy Towers Lead Demand
Other major leases include Starr Cos.’ $1.3B deal at BXP’s under-construction 343 Madison Ave. and Gibson Dunn’s $990M extension at 200 Park Ave. in the MetLife Building. Salesforce expanded its footprint at 1095 Sixth Ave. for $776M over 15 years. These transactions highlight ongoing demand for both new builds and existing trophy properties in top neighborhoods.
Vacancy Down, Rents Up in Core Submarkets
Manhattan leasing activity soared to 32M SF in 2025, a 37% jump from the prior year, according to CBRE. Office vacancy dropped below 13% overall. In Hudson Yards, the availability rate fell to 7.6%, the lowest in the city, while Midtown’s core saw strong absorption and upward pressure on rents—averaging $77.89 PSF, with top deals much higher. Ongoing leasing momentum in Hudson Yards follows major financing activity, which continues to support its development pipeline and investor confidence. The persistent demand in areas like Hudson Yards underscores the district’s dominance in the current cycle.
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What’s Next for Manhattan Office Market
New construction in Manhattan remains slow, while high-profile leases like Deloitte’s continue to tighten key submarkets. Availability in top districts has reached record lows, fueling stronger competition among tenants.
Companies keep seeking high-quality space and show a growing willingness to pay premium rents. This ongoing flight to quality will likely keep Hudson Yards and Midtown leading the city’s office market recovery through 2026.
