Manhattan office availability reached its lowest level in more than four years during the first quarter of 2025, dropping 240 basis points year-over-year to 17.3%, Avison Young reported. The firm’s latest report also showed trophy office properties accounting for 61.6% of leasing activity, nearly double the share seen a year ago.
Additionally, Avison Young reported that Manhattan lease terms are surpassing pre-pandemic averages. Trophy and class A buildings have seen year-over-year increases in average lease terms of 11.5% and 11.7% to 129 and 124 months, respectively. The trend reflects occupiers locking down high-end space for longer periods as availability tightens.
“Market-wide, the average lease term has risen to 118 months, 3.9% above the 2015–2019 average of 114 months, indicating a broader shift toward longer commitments,” said Danny Mangru, senior manager, U.S. office lead, Market Intelligence. “This is evident in class B/C buildings, where average lease terms have surged 30.5% year-over-year to 108 months, the highest since April 2019. As top-tier space becomes scarcer, demand is trickling down to more widely available B/C properties, prompting longer commitments there as well.”
Pictured: Brookfield Place in Lower Manhattan, where Jane Street Capital upsized to nearly one million square feet during Q1.
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