Manhattan Class A Office Rents Hit Record High
Manhattan’s office market has hit a new high.
Class A average asking rents rose to $85.45 per square foot in the third quarter, surpassing pre-pandemic levels and reaching an all-time high, according to a new Colliers report. Tenants inked deals for just over 10 million square feet in the third quarter. It was the fourth consecutive quarter with more than 10 million square feet of leasing, a feat last achieved in 2002, per Colliers.
The market crossed two other recovery milestones. Midtown’s available supply returned to its pre-pandemic level, with just under 28 million square feet of available space. And Midtown South had its strongest third quarter on record, driven largely by technology, advertising, media and information (TAMI) tenants.
Law firm Proskauer Rose inked the largest lease of the quarter, a 478,000-square-foot renewal and expansion at SJP Properties’ 11 Times Square, per Colliers. AI firm Anthropic’s full-building lease at AEW Capital Management’s 330 Hudson Street was the second-largest deal, followed by Havas Health Network’s 254,000-square-foot expansion and extension at 200 Madison Avenue, the Midtown South tower owned by George Comfort & Sons, Loeb Partners Realty and Jamestown.
Meanwhile, Manhattan’s availability rate fell 0.6 percentage points during the quarter to 12.4 percent, marking the 10th quarter in a row that the rate either dropped or held steady. Total available space fell to the lowest level since August 2020.
Class A space accounted for 73.3 percent of third-quarter leasing, or 7.38 million square feet, despite making up 64.6 percent of Manhattan’s inventory. Thirty deals of more than 5,000 square feet signed through the third quarter with asking rents above $200 per square foot, according to the latest Colliers data. That’s up from 20 such deals in all of 2025.
TAMI tenants accounted for 34 percent of third-quarter leasing, while financial services, insurance and real estate tenants made up 27 percent. Artificial intelligence firms alone leased a record 1.06 million square feet during the quarter, almost all of it — 960,000 square feet — concentrated in Midtown South.
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Anthropic finalizes Hudson Square 466K sf building lease as it grows in NYC
Havas Health inks 254K sf expansion and extension at 200 Madison
Manhattan office availability shrinks to six-year low
