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**Manhattan Office Leasing Posts Best First-Half Performance Since Pre-Pandemic**
Manhattan’s office leasing market saw a robust performance in the second quarter of 2025, contributing to the strongest first-half leasing volume since before the COVID-19 pandemic, according to new reports from JLL and Savills.
JLL reported that leasing activity reached six million square feet in Q2, bringing the year-to-date total to 14.8 million square feet—the most active first half since 2019. Meanwhile, Savills placed the Q2 figure even higher, at 8.8 million square feet, totaling 21.1 million square feet year-to-date—marking the best first-half tally since 2014.
The quarter also saw a tightening of the Manhattan office market. According to JLL, the office vacancy rate fell 20 basis points to 15.5%, while availability dropped more sharply—down 90 basis points to 15.3%. Overall, four million square feet of office space were removed from available inventory in Q2.
A key contributor to this trend was the significant withdrawal of sublease space from the market, indicating that some tenants continue to recalibrate their office needs as they refine return-to-work strategies.
One notable Q2 transaction included Universal Music Group’s 336,000-square-foot lease at Vornado Realty Trust’s PENN 2 development, highlighting ongoing demand for quality office space in Midtown.
This strong leasing activity offers a positive signal for Manhattan’s commercial real estate sector as it continues to stabilize post-pandemic.
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