New York City’s commercial real estate sector is experiencing a significant resurgence in 2025, marking a notable turnaround after years of pandemic-induced challenges. Recent data indicates a robust uptick in office leasing activities, particularly in Midtown Manhattan, signaling renewed confidence among businesses and investors alike.
According to industry reports, Manhattan is on track for its most active leasing year since 2019, with Midtown poised to achieve its highest leasing volume since 2018. This momentum is attributed to several large-scale lease agreements, including Blackstone’s expansion to approximately 1 million square feet at 345 Park Avenue and Bloomberg’s extension and expansion totaling nearly 1.9 million square feet across two major Midtown locations.
The positive trend extends beyond leasing figures. SL Green Realty, a prominent real estate investment trust, reported an occupancy rate of 92.5% at the end of 2024 and projects an increase to over 93% in the coming year. Notably, tech giant IBM has expanded its presence by leasing an additional 92,663 square feet at One Madison Avenue, bringing its total footprint at the property to over 362,000 square feet.
The city’s Office of Management and Budget forecasts the addition of approximately 38,000 new office-using jobs in 2025, predominantly in finance, business services, and information technology sectors. This anticipated job growth is expected to drive further demand for office space, as companies increasingly encourage employees to return to in-person work environments.
Industry experts caution that while the current trajectory is promising, sustained growth will depend on various factors, including economic conditions and infrastructure developments. Nevertheless, the resurgence in office leasing activity and job creation suggests a revitalized commercial real estate landscape in New York City, offering a hopeful outlook for the remainder of the year.