T
he Manhattan office market is experiencing a resurgence, with office leasing volume increasing by nearly 50% in October compared to the same period last year. A Colliers report attributes this growth to several large deals, including Bloomberg's expansion at 919 Third Avenue and TPG's new lease at The Spiral in Midtown South. As a result, Manhattan's availability rate has dropped to its lowest level in two years, with sublet supply also tightening for the eighth consecutive month.

    Midtown is driving much of this growth, accounting for nearly 60% of leasing activity despite representing only about 45% of Manhattan's inventory. If current trends continue, Midtown could experience its strongest year since 2018. According to Colliers' Franklin Wallach, "The narrative has shifted in Midtown's favor over the last couple of years." However, overall leasing volume remains below pre-pandemic levels, with about 27 million square feet leased so far this year compared to 43 million in 2019.

    It would take significant leasing activity in the fourth quarter for Manhattan's full-year leasing activity to match or exceed 2019 levels.