Manhattan Office Leasing Scores Best H1 Performance Since Before Pandemic

Second-quarter 2025 Manhattan office leasing volume contributed to the strongest first half of the year since before the pandemic, according to reports from JLL and Savills. JLL put the Q2 tally at six million square feet for a year-to-date total of 14.8 million square feet and the strongest first half since 2019, while Savills reported 8.8 million square feet in Q2 and 21.1 million square feet YTD for the strongest first half since 2014. 

JLL reported that office vacancy and availability both fell in Q2 due to leasing activity and sublease space withdrawals. Vacancy declined 20 basis points to 15.5% while availability fell even further by 90 bps to 15.3%.  The amount of available space decreased by four million square feet in Q2 alone.  

Several significant withdrawals of sublease space occurred during Q2, suggesting that some occupiers are still adjusting their space utilization and return-to-work practices, JLL said. 

Pictured: Vornado’s PENN 2, where Universal Music Group signed on for 336,000 square feet of office during Q2.

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