The New York office market showed signs of steady resilience in July, with 1.1 million square feet of leasing volume—bringing 2025’s year-to-date total to 16.7 million square feet. That’s 5% higher than the same time last year, despite a noticeable summer slowdown.
Availability fell by 30 basis points to 15.0%, with over 1 million square feet of space coming off the market in July alone.
Continue read for our Market Snapshot August 2025:
Key Sector Trends
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TAMI companies—technology, advertising, media, and information—accounted for one-third of July leasing, matching the financial services sector.
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Year-to-date, TAMI activity represents nearly one-quarter of total leasing volume, reflecting the sector’s continued importance to New York’s tenant mix.
By the Numbers
- 470.6M sq. ft. – Existing office inventory
- $79.07 per sq. ft. – Average direct asking rent
- 71.1M sq. ft. – Total available space
Development Outlook
Momentum in New York’s office market is steady, but supply dynamics will shape the path forward. Several large developments—including 343 Madison Avenue, which has already secured an anchor tenant—are now underway. Yet with delivery dates not expected until 2029 or later, new supply will remain limited for the foreseeable future.
This supply constraint, combined with active demand from sectors like technology, media, and financial services, suggests availability will continue to tighten gradually. July alone saw more than 1 million square feet come off the market, a reminder of how quickly quality space is absorbed when opportunities align with tenant demand.
Tenant relocations, like Verizon’s 200,000 square foot move to PENN 2, highlight the return of large, high-profile deals that add weight to the recovery story. At the same time, smaller transactions continue to drive volume across submarkets, creating a more balanced leasing environment.
While overall leasing may fluctuate from month to month, the fundamentals point toward a market that is stabilizing, absorbing space efficiently, and positioning itself for long-term strength. Looking ahead, tenants will face a more competitive environment for quality space, while landlords benefit from a more favorable supply-demand balance.
