Manhattan's office sector as a whole has recovered to its pre-pandemic leasing levels, and several areas are helping drive the performance.
A CBRE report analyzing Midtown's performance highlighted that in 2024, the core submarket completed 10.6 million square feet of deals, 10 percent above the average between 2015 and 2019.
According to CBRE, five core Midtown submarkets, in particular, have fully recovered since the pandemic: Grand Central, the Plaza, Park Avenue, Fifth/Madison Avenue, and Sixth Avenue/Rockefeller Center.
Recommended For You
Additionally, the momentum in those areas is continuing into 2025.
"Through the first two months of 2025, these submarkets are continuing to exceed the average," CBRE wrote.
"This resurgence is a testament to the enduring appeal of assets proximate to transportation hubs, well-maintained and high-quality office spaces, and desirable amenities.
Regarding transactions in general, Sixth Avenue/Rockefeller Center has stood out. In 2024 and through March 1, 2025, 10 deals surpassing 100,000 square feet were recorded in the area, outperforming all other submarkets. Times Square/West Side and Park Avenue lagged slightly behind the submarket, with nine and eight transactions that exceeded 100,000 square feet.
Since the start of 2024, the law and financial service sectors have accounted for most of the transactions (72 percent).
Also, the strong activity has led to the availability rate tightening, as the category in Manhattan's office sector has tumbled by 130 basis points to 13.4 percent over the past three months. Park Avenue has the lowest rate at 7.3 percent, followed by Sixth/Rockefeller Center at 13.4 percent. The highest is in TS/West Side, with 24.2 percent availability.
For the rest of 2025, CBRE forecasts that another 9.5 million square feet of lease deals will be recorded in Manhattan. That's in addition to the 1.9 million square feet already completed. The 11.4 million square feet in activity would be the highest amount posted in the last decade and beat the 11.3 million square feet recorded in 2018.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
