Manhattan trophy office vacancy fell to a cycle-low 4.9% as 23 leases topped $250 per square foot this year, 11 of them above $300.
\n Third and Lexington avenues posted the fastest Midtown lease-count growth from 2021 to 2025, and Third Avenue is on pace to beat its full-year 2025 activity.
\n Total vacancy dropped to 12.6% from 14.7% a year earlier while the pipeline stays largely preleased, leaving landlords with pricing power until new deliveries arrive after 2031.<\/p>\n
Key Takeaways<\/p>\n
Manhattan\u2019s trophy office vacancy has fallen to a cycle-low 4.9%, and tenants are starting to look beyond the premium buildings they once targeted, according to JLL\u2019s Q3 2026 New York office research.<\/p>\n
With top-tier space scarce and rents setting records, Third and Lexington avenues are drawing a growing share of Midtown leasing.<\/p>\n
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Trophy Space Runs Short<\/p>\n
JLL counted 23 Manhattan leases above $250 per square foot this year, and 11 of them topped $300. Castlehook committed to $375 per square foot at 625 Madison Avenue, and Sentinel signed at $345 per square foot at One Vanderbilt.<\/p>\n
Trophy asking rents<\/a> average $137.09 per square foot, and combined Trophy and Class A space averages $95.87. Overall direct asking rent reached $84.56, up from $80.72 a year earlier.<\/p>\n Tenants Test Other Corridors<\/p>\n Lexington and Third avenues posted the fastest lease-count growth among Midtown avenues from 2021 to 2025, at 28.6% and 18.4% annually. JLL says Third Avenue is on pace to pass its full-year 2025 activity before year-end.<\/p>\n JLL attributes the shift to tenants broadening their searches as premium inventory dries up. Q3 absorption shows demand spreading out: Midtown Core lost 845,122 square feet, while Penn District gained 637,915 and Hudson Square added 844,046.<\/p>\n Leasing Stays Broad<\/p>\n Leasing volume hit 6.9 million square feet in Q3, bringing the year-to-date total to 25.7 million, up 2.3% from 25.1 million through Q3 2025. Law, tech and financial services drove activity.<\/p>\n Anthropic took 462,000 square feet at 330 Hudson Street, Proskauer Rose renewed 413,000 square feet at 11 Times Square, and Snapchat subleased 199,000 square feet at 2 Penn Plaza.<\/p>\n Total vacancy fell to 12.6% from 13.1% in Q2 and 14.7% a year ago, the lowest level since before 2020. The drop fits a pattern in which Midtown office availability<\/a> has already returned to pre-pandemic levels.<\/p>\n Why It Matters<\/p>\n