Manhattan workplace rents preserve climbing.
The borough’s common asking hire climbed to $78.03 per sq. foot within the second quarter, its highest degree since July 2020 and simply shy of the March 2020 common of $79.47, based on a brand new Colliers report. Asking rents rose 5.7 % over the previous yr, the sharpest midyear improve since 2016, as giant blocks of lower-priced area disappeared from the market and landlords commanded high greenback for the large blocks of area coming on-line.
The hire beneficial properties come as Manhattan’s workplace market continues to tighten after two years of regular restoration. The supply charge fell to 13 % within the second quarter, down from 13.7 % in March and marked the ninth consecutive quarter through which availability both declined or held regular, based on Colliers.
Tenants inked offers for 11 million sq. ft throughout the second quarter, down about 6.5 % from the primary quarter however up about 19 % year-over-year. The primary half of 2026 logged 22.8 million sq. ft of leasing, the strongest first-half efficiency since 2002. If that tempo continues by the tip of the yr, Manhattan would file its busiest leasing year since 2000, per Colliers.
Sublet area shrunk by 22 % over the past yr to about 9 % under pre-pandemic ranges.
The quarter’s largest lease was Simpson Thacher & Bartlett’s 916,000-square-foot deal at Extell Growth’s 570 Fifth Avenue, adopted by L’Oréal’s 484,000-square-foot renewal at Associated Corporations’ 10 Hudson Yards and Cleary Gottlieb Steen & Hamilton’s 476,000-square-foot lease at Brookfield Properties’ 1 Liberty Plaza.
Class A buildings captured almost 69 % of leasing exercise. The unreal intelligence sector additionally continued to snap up area within the second quarter, leasing roughly 800,000 sq. ft. That surpassed the 790,000 sq. ft AI corporations leased throughout all of final yr.
In the meantime, workplace funding gross sales confirmed indicators of stabilization. Manhattan recorded 15 workplace transactions totaling $1.4 billion throughout the quarter, matching final yr’s quantity, although the median value dipped to $50.5 million, down from $56 million year-ove-year, per Colliers.
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