Manhattan’s office leasing activity had its strongest month of the year in July, rising over 20% to 2.3 million square feet. However, demand remains subdued compared to pre-pandemic levels, according to Colliers’ July market report. 

The Financial District’s robust performance was largely attributed to a single large lease at 110 William Street, while Midtown saw a 20% drop in leasing volume since June and over 50% year-over-year.  

Despite the improvement, Manhattan’s office availability stands near 18%, significantly above the pre-pandemic benchmark of 10%. Average asking rent remained steady at $75 per square foot, 5% below March 2020 levels. Landlords offering tenant incentives have helped stabilize rents, but sustained demand surpassing supply is needed for market normalization.