- Manhattan office leasing totaled 3.13M SF in May, a 7.2% drop from April, but a 5.2% increase over May 2024 and 15.9% above the 10-year monthly average.
- The biggest lease of the month—and the largest since December 2019—was NYU’s 70-year, 1.1M SF deal at 770 Broadway.
- Availability dropped to 15.4%, the lowest since January 2021, while average asking rents declined slightly to $73.49 PSF.
- With 2025 leasing volume maintaining momentum, Manhattan could see its strongest year in office leasing since 2001.
Holding Strong Despite Dip
Leasing activity in Manhattan’s office market softened slightly in May but remains robust overall, reports Commercial Observer. The borough recorded 3.13M SF of signed leases, down 7.2% from April, according to Colliers. Still, activity was 5.2% higher than the same period in 2024 and nearly 16% above the 10-year monthly average.
Mega Lease Moves The Market
The month was anchored by a landmark deal: New York University’s 1.1M SF lease at Vornado’s 770 Broadway. The 70-year agreement marked the largest lease since 2019 and accounted for roughly one-third of May’s leasing volume.
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Other Notable Deals
In addition to NYU, major leases included Aquarian’s 75K SF at 550 Madison Avenue, Fox Rothschild’s 73K SF at 101 Park Avenue, JB&B’s 68K SF at 55 Water Street, and Brunello Cucinelli’s 51K SF expansion at 689 Fifth Avenue.
Market Metrics
Manhattan’s availability rate dropped to 15.4%, its lowest since early 2021, suggesting limited supply, sustained interest, and steady leasing activity. However, the average asking rent dipped 1.2% to $73.49 per square foot.
By the numbers:
- Midtown: 1.2M SF
- Midtown South: 1.7M SF
- Downtown: 241,445 SF
Outlook Remains Bullish
With five months of strong activity on the books, Manhattan is on pace for a potential record-setting year. “If the current pace continues,” said Colliers’ Franklin Wallach, “we would have the strongest year of leasing since 2001.”
