New York City’s office recovery started with trophy buildings. Now tighter availability and rising rents are pushing tenants to consider a wider range of buildings and locations.
“Tenants are widening the map because they have to, but also because they’re finding attractive alternatives,” says David Giancola, senior managing director, capital markets, JLL New York.
Manhattan office leasing reached 25.7 million square feet through third quarter 2026, up 2.3 percent from the same period in 2025, according to JLL. Total vacancy fell to 12.6 percent from 14.7 percent a year earlier, while year-to-date net absorption reached nearly 4.9 million square feet. Overall direct asking rents increased to $84.56 per square foot, with rents rising across building classes.
