{"id":221084,"date":"2026-05-05T20:29:07","date_gmt":"2026-05-05T20:29:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/221084\/"},"modified":"2026-05-05T20:29:07","modified_gmt":"2026-05-05T20:29:07","slug":"manhattans-tech-sector-notched-a-record-number-of-lease-deals-in-2025-commercial-observer","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/221084\/","title":{"rendered":"Manhattan\u2019s Tech Sector Notched a Record Number of Lease Deals in 2025 \u2013 Commercial Observer"},"content":{"rendered":"

Manhattan\u2019s technology sector in 2025 increased its office footprint by 6.54 million square feet, according to a new office leasing report<\/a> from Colliers<\/a>. The year was second only to 2019 in terms of new square footage, but its count of 235 lease deals shattered a 2019 record by 80 transactions.<\/p>\n

\u201cThere were more transactions in almost every size category, except for the very largest,\u201d Frank Wallach, executive managing director with Colliers, told Commercial Observer.<\/p>\n

SEE ALSO: Scott Thomsen of LuxWall: 5 Questions<\/a><\/p>\n

It\u2019s onwards and upwards in 2026. Tech\u2019s office leasing activity totaled 1.89 million square feet during the first quarter, surpassing last year\u2019s quarterly average, largely thanks to the artificial intelligence sector\u2019s voracious appetite for office space.\u00a0<\/p>\n

AI tenants accounted for one-third of the office market\u2019s tech demand in the first quarter of 2026 with 670,000 square feet of leasing, up from a 12.1 percent share of tech demand in 2025. This year\u2019s total AI-related office demand so far \u2014 when health tech platform Tennr<\/a>\u2019s 125,733-square-foot sublease<\/a> at 345 Hudson Street in April is added to the mix \u2014 has already eclipsed 2025, according to Colliers.<\/p>\n

For such massive deals, space is getting tight. Manhattan tech companies in need of footprints in excess of 250,000 square feet currently have just 24 options available within the next 12 months, Wallach said.<\/p>\n

New York City\u2019s tech tenants benefited from a windfall of concessions in 2025, the Colliers report also noted. Last year, the sector raked in an average rental abatement of 13.3 months and tenant improvement allowances reaching $131.70 per square foot. The tech sector\u2019s taking rents, which averaged $90.35 per square foot in 2025, were just 0.1 percent below record highs in 2019.<\/p>\n

Midtown South\u2019s supply of prewar buildings remained enormously popular among the tech crowd, capturing two-thirds of the sector\u2019s office demand in 2025 and into 2026, according to Colliers. Midtown, too, notably secured a record 1.18 million square feet of office leases in 2025 from the likes of Amazon<\/a> and Salesforce<\/a>.\u00a0<\/p>\n

But Lower Manhattan had a more subdued office leasing market in the first quarter, according to a new report <\/a>from the Alliance For Downtown New York. Still, new leasing there, too, was led by the tech sector.\u00a0<\/p>\n

AI security platform Adaptive Security<\/a> relocated to 51,220 square feet<\/a> at Silverstein Properties\u2019 120 Broadway in Lower Manhattan\u2019s largest new lease, while SHoP Architects claimed the largest deal for 2025 overall for the area, with a 56,196-square-foot renewal and expansion<\/a> at the Cammeby\u2019s International-owned Woolworth Building.<\/p>\n

Emily Davis can be reached at edavis@commercialobserver.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Manhattan\u2019s technology sector in 2025 increased its office footprint by 6.54 million square feet, according to a new…\n","protected":false},"author":2,"featured_media":221085,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[80762,87138,42120,2361,75,84,83,1286,9,24,63,2362,34512,282],"class_list":["post-221084","post","type-post","status-publish","format-standard","has-post-thumbnail","category-manhattan","tag-120-broadway","tag-345-hudson-street","tag-frank-wallach-channel","tag-leases","tag-manhattan","tag-manhattan-headlines","tag-manhattan-news","tag-more","tag-new-york","tag-new-york-city","tag-nyc","tag-office-leases","tag-research-analysis","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/221084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=221084"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/221084\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/221085"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=221084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=221084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=221084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}