Lease Terms Lengthen as Manhattan Office Availability Plummets

Manhattan office availability reached its lowest level in more than four years during the first quarter of 2025, dropping 240 basis points year-over-year to 17.3%, Avison Young reported. The firm’s latest report also showed trophy office properties accounting for 61.6% of leasing activity, nearly double the share seen a year ago.

Additionally, Avison Young reported that Manhattan lease terms are surpassing pre-pandemic averages. Trophy and class A buildings have seen year-over-year increases in average lease terms of 11.5% and 11.7% to 129 and 124 months, respectively. The trend reflects occupiers locking down high-end space for longer periods as availability tightens.

“Market-wide, the average lease term has risen to 118 months, 3.9% above the 2015–2019 average of 114 months, indicating a broader shift toward longer commitments,” said Danny Mangru, senior manager, U.S. office lead, Market Intelligence. “This is evident in class B/C buildings, where average lease terms have surged 30.5% year-over-year to 108 months, the highest since April 2019. As top-tier space becomes scarcer, demand is trickling down to more widely available B/C properties, prompting longer commitments there as well.”

Pictured: Brookfield Place in Lower Manhattan, where Jane Street Capital upsized to nearly one million square feet during Q1.