New York’s office-leasing market experienced a strong first quarter 2025, with leasing volume reaching 8 million square feet, contributing to a 31 percent increase in leasing volume year-over-year compared to first quarter 2024, according to JLL.
It is considered the strongest first quarter performance since 2019. A diverse range of industries drove leasing activity.
The office market’s recovery was reflected in total vacancy decreasing by 22 basis points quarter-over-quarter to 15.8 percent. This improvement partially was driven by a substantial decrease in overall sublease vacancy, which fell 56 basis points to 3.2 percent, as sublet leasing volume approached 1 million square feet. Several other sublet blocks were withdrawn from the market as tenants reclaimed their own space. Consequently, both sublet and total asking rents increased, with sublet rents rising 1.9 percent to $56.20 per square foot and overall rents increasing 1.1 percent to $75.65 per square foot
