{"id":283883,"date":"2026-07-01T18:26:09","date_gmt":"2026-07-01T18:26:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/283883\/"},"modified":"2026-07-01T18:26:09","modified_gmt":"2026-07-01T18:26:09","slug":"tightening-office-market-pushes-manhattan-rents-higher-in-q2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/283883\/","title":{"rendered":"Tightening Office Market Pushes Manhattan Rents Higher in Q2"},"content":{"rendered":"

Manhattan office rents keep climbing.<\/p>\n

The borough\u2019s average asking rent climbed to $78.03 per square foot in the second quarter, its highest level since July 2020 and just shy of the March 2020 average of $79.47, according to a new Colliers report. Asking rents rose 5.7 percent over the past year, the sharpest midyear increase since 2016, as large blocks of lower-priced space disappeared from the market and landlords commanded top dollar for the big blocks of space coming online.<\/p>\n

The rent gains come as Manhattan\u2019s office market continues to tighten after two years of steady recovery. The availability rate fell to 13 percent in the second quarter, down from 13.7 percent in March and marked the ninth consecutive quarter in which availability either declined or held steady, according to Colliers.<\/p>\n

Tenants inked deals for 11 million square feet during the second quarter, down about 6.5 percent from the first quarter but up about 19 percent year-over-year. The first half of 2026 logged 22.8 million square feet of leasing, the strongest first-half performance since 2002. If that pace continues through the end of the year, Manhattan would record its busiest leasing year since 2000<\/a>, per Colliers.<\/p>\n

Sublet space shrunk by 22 percent over the last year to about 9 percent below pre-pandemic levels.<\/p>\n

The quarter\u2019s largest lease was Simpson Thacher & Bartlett\u2019s 916,000-square-foot deal at Extell Development\u2019s 570 Fifth Avenue<\/a>, followed by L\u2019Or\u00e9al\u2019s 484,000-square-foot renewal at Related Companies\u2019 10 Hudson Yards<\/a> and Cleary Gottlieb Steen & Hamilton\u2019s 476,000-square-foot lease at Brookfield Properties\u2019 1 Liberty Plaza<\/a>.\u00a0<\/p>\n

Class A buildings captured nearly 69 percent of leasing activity. The artificial intelligence sector also continued to snap up space in the second quarter, leasing roughly 800,000 square feet. That surpassed the 790,000 square feet AI companies leased during all of last year.<\/p>\n

Meanwhile, office investment sales showed signs of stabilization. Manhattan recorded 15 office transactions totaling $1.4 billion during the quarter, matching last year\u2019s volume, though the median price dipped to $50.5 million, down from $56 million year-ove-year, per Colliers.<\/p>\n

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Manhattan office market on pace for best year since Y2K<\/p>\n

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L’Oreal and SAP take big spaces at Hudson Yards<\/p>\n

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April\u2019s largest lease in Manhattan not all it seems to be<\/p>\n

\t\t\t<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Manhattan office rents keep climbing. The borough\u2019s average asking rent climbed to $78.03 per square foot in the…\n","protected":false},"author":2,"featured_media":283884,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[108866,75,84,83,9,24,63],"class_list":["post-283883","post","type-post","status-publish","format-standard","has-post-thumbnail","category-manhattan","tag-colliers-q2-office-report","tag-manhattan","tag-manhattan-headlines","tag-manhattan-news","tag-new-york","tag-new-york-city","tag-nyc"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/283883","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=283883"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/283883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/283884"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=283883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=283883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=283883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}