New York Office Market Report

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.