An active summer put Manhattan in range of its strongest leasing year since 2014

There was no summer slowdown for office demand. Leasing activity reached 10.6 million square feet (msf) in Q3 2025, a 20.4% increase over the previous quarter. The strong quarterly figure pushed year-to-date volume to 31.7 msf, putting the market within reach of surpassing 2019’s full-year total of 41.5 msf and achieving the highest annual leasing total since 2014. Manhattan’s office recovery continues to be driven by its core industries—financial services and insurance, technology, advertising, media and information, and legal services—which together accounted for 61.1% of Q3 leasing activity. However, persistent softness in the labor market may present headwinds to future demand, especially as the Federal Reserve maintains a cautious stance on interest rate cuts amid ongoing inflation concerns.

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