New York — Manhattan’s office market is on track to have its strongest leasing year since before the pandemic, with the help of a wave of long-term commitments from universities, financial firms and major corporations. A series of blockbuster deals in 2025 has pushed leasing volume toward levels not seen since 2019, offering one of the clearest signs yet that the city’s office sector is regaining momentum after years of disruption.
Industry data shows total Manhattan office leasing is trending toward 40 million square feet for the year, already surpassing 2024’s total and closing in on pre-COVID benchmarks. The surge has been driven in large part by several megaleases exceeding 300,000 square feet, which have absorbed large blocks of vacant space and tightened availability in key submarkets.
Mega-leases anchor the recovery
The single largest lease of the year — and one of the biggest in nearly a decade — came from New York University (NYU), which signed a 1.067 million-square-foot master lease at 770 Broadway. The agreement removed a major swath of vacancy from the market and underscored the growing role of institutional tenants in stabilizing Manhattan’s office inventory. This clears the way to make these buildings engineering hubs as well as home to science and technology programs.
NYU’s deal was followed closely by Jane Street Capital, which committed to 1 million square feet at 250 Vesey Street in Brookfield Place. The expansion reinforced Lower Manhattan’s appeal to financial firms seeking modernized space with strong transit access and amenities.
Another major driver came from Deloitte, which signed a roughly 807,000-square-foot lease at 70 Hudson Yards, anchoring one of the newest towers on Manhattan’s West Side. The deal stood out as one of the largest corporate office commitments since the pandemic and highlighted continued demand for newly built, high-quality offices.
Together, these three leases alone accounted for nearly 3 million square feet of absorption in 2025, significantly lifting year-to-date totals and reshaping expectations for the market.
Tech and corporate expansion add momentum
Beyond the largest deals, a steady flow of sizable corporate leases has broadened the recovery. Amazon signed a 330,000-square-foot lease at 10 Bryant Park, taking over space formerly occupied by HSBC, while Salesforce committed to 310,500 square feet at 3 Bryant Park. Both deals added to Midtown’s leasing momentum and reflected a continued, if more selective, commitment to in-office operations among large tech firms.
These transactions were complemented by renewals and expansions from law firms, financial services companies and professional services tenants, helping diversify demand across industries. Market analysts note that while megaleases dominate headlines, the cumulative effect of mid-sized deals has been just as important in sustaining leasing velocity throughout the year.
By the fall, monthly leasing volumes regularly exceeded historical averages, with October alone delivering more than 3.5 million square feet of signed deals — enough to push 2025 totals past last year’s figure before the final quarter even concluded.
Availability tightens as market outlook improves
The increase in leasing has begun to ease Manhattan’s long-standing availability challenges. Overall office availability fell to around 15 percent in 2025, its lowest level since 2021, according to market data. While vacancy remains elevated compared with 2019, the decline marks a meaningful shift after several years of rising availability.
Landlords have benefited not only from new leasing activity but also from office-to-residential conversions, which have reduced total office inventory and concentrated demand in newer, well-located buildings. As a result, asking rents in prime properties have stabilized and, in some cases, edged higher, particularly for trophy and Class A space.
While challenges remain, 2025’s leasing surge suggests that the market has entered a more durable phase of recovery — one anchored by fewer, but significantly larger, bets on New York City’s future as a global business hub.
