Manhattan Office Leasing Posts Strongest First Half Since 2002
- ARCFE U.S.
- Jul 12
- 4 min read
Manhattan’s office market recorded its strongest first half of leasing demand in more than two decades, according to the latest Colliers Q2 2026 Manhattan Office Market Report.
Office leasing volume reached 11.02 million square feet in the second quarter, exceeding the five-year quarterly average by 29.4% and the ten-year average by 31.3%. Total leasing activity during the first half of 2026 reached 22.80 million square feet, representing a 10.5% increase from the same period in 2025 and Manhattan’s strongest first-half performance since 2002. If leasing continues at the same pace, 2026 could produce the market’s highest annual demand since 2000.
The improvement was also reflected in Manhattan’s available office supply. The overall availability rate declined by 0.7 percentage points during the quarter to 13.0%, marking the ninth consecutive quarter in which availability either tightened or remained stable. Available supply fell to approximately 68.10 million square feet, 30.5% below the post-pandemic peak recorded in February 2024 and the lowest level since October 2020. Manhattan also recorded 3.51 million square feet of positive net absorption during the quarter.
Average asking rents increased by 0.6% during Q2 to $78.03 per square foot, the highest level since July 2020. Asking rents were also 5.7% higher than one year earlier—the strongest mid-year annual growth since 2016—and stood only 1.8% below the March 2020 average of $79.47 per square foot.
Demand remained concentrated in higher-quality office space. Class A properties accounted for 68.9% of Manhattan’s total leasing activity, with approximately 7.59 million square feet leased during the quarter. Major transactions included Simpson Thacher & Bartlett’s 916,000-square-foot lease at 570 Fifth Avenue, L’Oréal Groupe’s 484,000-square-foot renewal at 10 Hudson Yards, and Cleary Gottlieb Steen & Hamilton’s approximately 476,000-square-foot lease at 1 Liberty Plaza.
Leasing demand was also distributed across several major business sectors. Professional services represented 30% of activity, followed by technology, advertising, media and information services at 27%, and financial services, insurance and real estate at 24%. This broader tenant mix indicates that Manhattan’s office recovery is being supported by multiple established industries rather than a single source of demand.
Why Manhattan’s Office Leasing Recovery Matters
The latest data show that Manhattan’s office recovery is increasingly supported by several reinforcing market signals: sustained leasing demand, declining available supply, positive absorption and rising asking rents.
The results also point to a continued preference for well-located, high-quality office buildings. Class A properties captured a greater share of leasing volume than their share of Manhattan’s total office inventory, suggesting that major tenants remain willing to commit to buildings offering modern infrastructure, strong transportation access and high-quality workplace environments. This trend is also reflected in recent developments covered by ARCFE, including American Express’s new headquarters at 2 World Trade Center and the continued expansion of major law firms across Manhattan.
EB-5 Investor Insight
For EB-5 investors, the Colliers report offers several useful market-level observations:
1. Long-term business demand supports local real estate fundamentals
Strong office leasing activity reflects continued employer commitment to New York City. Large lease renewals, relocations and expansions can support employment concentration, transportation use, local business activity and broader demand for residential and commercial real estate.
2. Quality, location and execution remain increasingly important
The concentration of leasing activity in Class A buildings reinforces the importance of project quality and location. For EB-5 investors, strong metropolitan-level demand should still be considered together with the specific project’s development team, construction plan, approvals and competitive positioning.
3. Market recovery does not replace project-level underwriting
Positive office-market data provide useful economic context, but they do not determine the strength of an individual EB-5 project. Investors should separately evaluate the capital stack, EB-5 loan position, collateral, construction financing, job creation methodology and repayment pathway.
Investors seeking a broader introduction can review ARCFE’s guide to the EB-5 Immigrant Investor Program.
ARCFE View
At ARCFE, we monitor New York City leasing, financing, development and construction activity as part of our broader real estate review framework.
Manhattan’s strongest first-half leasing performance since 2002 reinforces New York City’s continued role as a major global center for finance, professional services, technology and corporate activity. For EB-5 investors, these market fundamentals are most meaningful when they are combined with disciplined review of the specific project’s location, capital structure, collateral position, development readiness, job creation and repayment strategy.
Related ARCFE Resources
Learn how American Express’s new global headquarters reflects long-term corporate commitment to Lower Manhattan.
Explore how large law-firm leases are contributing to Manhattan’s office-market demand.
Understand how the EB-5 program works and how regional center investments are structured.
Learn more about ARCFE’s New York real estate finance background and EB-5 project review approach.
Interested in New York Real Estate-Backed EB-5 Opportunities?
Discover Skyline Tower II, ARCFE’s current EB-5 project in Long Island City, Queens.
Complete the form and our team will follow up to discuss your EB-5 planning and current project options.
Official Source
Primary Source: Colliers — Manhattan, NYC Office Market Report | Q2 2026
Disclaimer: Articles published under the "News" category are curated from third-party media sources for informational purposes only. ARCFE does not claim ownership of the original content, nor does it guarantee the accuracy, completeness, or timeliness of the information presented. The views and opinions expressed in these articles are those of the original authors and do not necessarily reflect the position of ARCFE. Nothing contained herein constitutes investment, legal, or tax advice. Readers are encouraged to consult with qualified professionals before making any investment decisions.
