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Market Report

New York Office Market Report

2025 Investment Forecast

Prime Office Space Demand Extends Beyond Midtown,
Fueling Metrowide Leasing Activity

Tenant needs build across multiple submarkets. New York’s office market recovery is expected to continue in 2025, following last year’s record-setting net absorption. Demand for high-end, transit-accessible space should continue to drive Midtown leasing, where about 40 agreements over 100,000 square feet were signed last year, nearly doubling 2023 levels. Major 2025 move-ins should reinforce fundamentals, which include commitments of 500,000 square feet by Citadel and 300,000 square feet each by WeWork and Apollo. Midtown South and Downtown also noted post-pandemic net absorption highs last year, signaling a broadening of leasing activity across the metro. Tighter Class A supply in Midtown may draw some tenants to these neighborhoods, while limited availability of top-tier space keeps others in their existing, slightly older buildings. Meanwhile, demand for smaller, cost-effective floor plans should sustain momentum in Brooklyn and Queens, where absorption levels reached a three-year high in 2024.

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