The New York office market experienced a remarkable revival in October. According to the latest monthly report from real estate services firm Colliers, leasing volume in Manhattan climbed by 54.1 per cent compared to the previous month of September. Compared to the prior-year month of October 2025, this represents an increase of 24.7 per cent. Leasing activity has thus returned to levels typically seen before the outbreak of the pandemic in March 2020.
Franklin Wallach, Executive Managing Director of Research and Business Development at Colliers, explained that the market gained noticeable momentum in October. The acceleration in leasing activity has been accompanied by a steady firming of market fundamentals. Transaction volume sits well above historical averages. At the same time, available sublease space fell to its lowest level in seven years, whilst overall space availability recorded its lowest figure since August 2020.
Strong demand in Midtown and rising rental rates
The Midtown submarket registered the strongest take-up, accounting for a total of 2.4 million square feet of newly leased office space. In Midtown South, volume reached approximately 1.5 million square feet, whilst 567,181 square feet were recorded in Lower Manhattan. Across Manhattan as a whole, the availability rate narrowed by 0.1 percentage points to 12.3 per cent.
This tightening had an immediate effect on pricing levels. The average asking rent rose in October to $79.47 per square foot, compared to $78.36 in September and $75.18 per square foot in October 2025. Wallach noted that available supply in Midtown has now fallen below the level of March 2020. Furthermore, Manhattan's average rent has regained its pre-pandemic mark, whilst figures in Midtown have actually surpassed the March 2020 level.
Major transactions support full-year performance
Should current momentum persist, Manhattan is on course for its strongest leasing year since 2000, according to Colliers, as year-to-date volume remains well ahead of the same period last year. The monthly result was driven significantly by several large-scale transactions:
- —Citadel leased 1.05 million square feet as an anchor tenant at 350 Park Avenue.
- —Financial technology company Ramp expanded its space to 460,300 square feet at 28-40 West 23rd Street.
- —Law firm Seward & Kissel renewed its lease for 171,112 square feet at One Battery Park Plaza.
- —Law firm Morrison & Foerster secured 141,148 square feet at 250 West 55th Street under a lease renewal.
The concentration on premium space and the retention of high-profile occupiers from the financial and legal sectors demonstrate the enduring appeal of established New York office locations.
