Manhattan Office Leases Hit New Post-Pandemic Heights

Manhattan’s office market reached a new milestone in 2024, with office leasing surpassing post-pandemic records.

By The Numbers

Preliminary data from CoStar Analytics shows that 25,8 MSF of office space was leased across 3.76K deals, up 12% over 2023 and 3% from the previous leasing peak in 2022.

While 2024’s leasing figures are impressive, total volume still lags behind pre-pandemic numbers. In 2019, office leasing topped 33 MSF, with 15 large deals (over 200 KSF) driving the market. 

By contrast, 2024 saw only 7 such deals, highlighting the ongoing shift to smaller office footprints as companies adjust to new hybrid and remote work models.

Midtown Moves

Midtown Manhattan emerged as the central focus for office leasing in 2024. Major law and finance firms, such as Ropes & Gray and TPG Global, have committed to large office spaces in the area, taking advantage of the region’s newly developed office towers and superior accessibility. 

The rise in Midtown’s popularity is tied to a reduction in available space in key neighborhoods, like Park Avenue, further fueling demand for modern office space.

Sector-Specific Trends

The legal and financial sectors were the most active in leasing office space in 2024. These industries, which have led the charge in bringing employees back to the office, were also among the top tenants signing significant leases. 

Some notable transactions included Ropes & Gray leasing 390 KSF at 1285 Avenue of the Americas and Bloomberg securing 175 KSF at 919 Third Ave.

Still The Big Apple

Looking ahead to 2025, leasing momentum is expected to continue—provided there are no major disruptions. With high-quality offices still in demand, particularly in newly developed areas, Manhattan’s office market shows signs of sustained growth, albeit at a slower pace than before the pandemic.

As businesses continue to adjust to post-pandemic realities, the demand for smaller office spaces and high-quality amenities will also continue to reshape the market, making Midtown Manhattan a focal point for leasing activity in the years to come.ape, the industry is seeing a greater emphasis on smaller, more efficient store footprints, with a shift toward enhancing the in-store experience for customers who do choose to shop in person.plex are now in the national spotlight. The Urban Land Institute named the area one of the top real estate markets to watch in 2025, buoyed by its population surge, strong economic fundamentals, and expanding infrastructure. 

As the city continues to expand, it’s expected to remain a hotbed for real estate investment and job opportunities, offering a unique blend of traditional Texas culture and modern development. additional momentum to the commercial and multifamily mortgage markets in 2025.