{"id":363048,"date":"2026-10-02T18:18:07","date_gmt":"2026-10-02T18:18:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/363048\/"},"modified":"2026-10-02T18:18:07","modified_gmt":"2026-10-02T18:18:07","slug":"nyc-doom-loop-more-like-boom-loop-as-manhattan-office-space-fills-up","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/363048\/","title":{"rendered":"NYC doom loop? More like boom loop, as Manhattan office space fills up"},"content":{"rendered":"

The pandemic-era \u201cdoom loop\u201d that supposedly threatened New York City\u2019s<\/a> future turned to a boom loop, as Manhattan\u2019s 450 million square feet of offices are now more full than before the COVID pandemic emptied out skyscraper floors.<\/p>\n

Three major brokerages found that demand has driven up rents at a frenzied pace<\/a>. CBRE said Manhattan \u201casks\u201d rose nearly 4% since a year ago.<\/p>\n

Even so, \u201casking rent averages don\u2019t tell the full story,\u201d said CBRE research director Michael Slattery.<\/p>\n

Manhattan\u2019s 450 million square feet of offices are now more full than before the COVID pandemic emptied out skyscraper floors. eyetronic \u2013 stock.adobe.com<\/p>\n

\u201cThe best space is being leased quickly, leaving lower-quality space on the market. As a result, rent growth for the most desirable floors is likely higher than overall figures suggest,\u201d he added.<\/p>\n

Another brokerage firm, Colliers, cited a rise in Midtown asking rents from $80.71 per square foot to $84.99 year-over-year.<\/p>\n

In the best Class-A buildings, the increase was even greater. Asking rents leapt from $75.44 per square foot to $$94.91 in the same period \u2013 a 9.9% increase, according to Savills.<\/p>\n

CBRE\u2019s full market survey won\u2019t be out until next week. But third-quarter surveys by Colliers and Savills found availability at 13.1% and 13.4%, respectively, the lowest since early 2020.<\/p>\n

The intense expansion frenzy actually produced a down side. Vacancy in the best modern, amenities-filled buildings is barely 12%, according to both surveys \u2014 making it near-impossible for tenants seeking to add employees.<\/p>\n

\u201cI have law tenants who want to add more than 50,000 square feet and there\u2019s close to zero\u00a0 available,\u201d said a prominent commercial broker who declined to be named.<\/p>\n

\u201cForget the pandemic \u2014 we haven\u2019t seen a market so tight for premium floors since before 9\/11,\u201d the broker added.<\/p>\n

Law firm Proskauer Rose renewed and expanded to 476,000 square feet at 11 Times Square. Google Maps<\/p>\n

AI powerhouse Anthropic leased the entire 465,000 square-foot building at 330 Hudson St. Google Maps<\/p>\n

The third-quarter boom was driven by major new leases, renewals and expansions across every Manhattan submarket, from the World Trade Center to 625 Madison Ave. at East\u00a0 58th Street. The latter isn\u2019t even built yet, but it\u2019s where financial\/insurance firm General Atlantic signed<\/a> with developer Related Companies for 150,000 square feet.<\/p>\n

Law firm Proskauer Rose renewed and expanded to 476,000 square feet at 11 Times Square. AI powerhouse Anthropic leased the entire 465,000 square-foot building at 330 Hudson St.<\/p>\n

Meanwhile, even as demand shows no sign of letting up, no additional inventory will become available for years at such planned projects as Vornado and Ken Griffin\u2019s 350 Park Ave., BXP\u2019s 343 Madison Ave. and SL Green\u2019s 346 Madison Ave.<\/p>\n

A rendering of 625 Madison, where General Atlantic for 150,000 square feet. Courtesy of Related Companies<\/p>\n

\u201cNobody\u2019s moving to New Jersey yet, but some companies are thinking about it for support staff,\u201d the broker said.<\/p>\n

Impatience is widespread. JLL broker Kristen Morgan recently told The Post that tech and AI tenants couldn\u2019t wait for a planned new Hudson Square tower that would take 18 months to build.<\/p>\n

\u201cThey want butts in seats now,\u201d she said.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The pandemic-era \u201cdoom loop\u201d that supposedly threatened New York City\u2019s future turned to a boom loop, as Manhattan\u2019s…\n","protected":false},"author":2,"featured_media":363049,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[288,2361,75,84,83,9,24,63,3273,1491,3274],"class_list":["post-363048","post","type-post","status-publish","format-standard","has-post-thumbnail","category-manhattan","tag-business","tag-leases","tag-manhattan","tag-manhattan-headlines","tag-manhattan-news","tag-new-york","tag-new-york-city","tag-nyc","tag-office-buildings","tag-real-estate","tag-realty-check"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/363048","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=363048"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/363048\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/363049"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=363048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=363048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=363048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}