JLL Capital Markets has announced a strong rebound in investment activity across all New York City asset classes, led by a dramatic resurgence in the office sector.
Office transaction volume in 2025 increased by more than 26 percent year-over-year to $11 billion, supported by major institutional trades.
Manhattan’s office vacancy rates vary widely, ranging from 15.8 percent among class B buildings to just 6.4 percent for trophy space, highlighting how high-quality assets continue to attract leasing while older commodity properties remain under pressure. JLL year-end analysis found that a significant amount (8.1 million square feet) of vacant space is in buildings that are converting, or challenged because of capital stack issues, making real vacancy smaller than the data would suggest.
Andrew Scandalios, senior managing director and co-head of the New York office of JLL Capital Markets, commented, “Over the course of 2025, momentum steadily rebuilt across Ne
