Manhattan Office Vacancies Drop Across All Major Submarkets

According to new analytics from CoStar, Manhattan’s three primary office markets—Midtown, Midtown South, and Downtown—are all reporting significant reductions in available space. This uniform trend marks a pivotal moment in the city’s ongoing office sector recovery, following years of sluggish leasing activity post-pandemic.

Class A buildings have led the charge in this rebound, particularly in Midtown South, where vacancies are being filled at a steady pace. Tenants are increasingly drawn to high-quality, amenity-rich properties, often favoring renovated or newly developed office assets over older inventory.