NYC Rent Hikes Stir Debate as Office Leasing Slows and Debt Cleanup Begins

July 7, 2025 | New York City

This week in NYC real estate, the Rent Guidelines Board approved a 3% increase for one-year and 4.5% for two-year leases in rent-stabilized apartments, prompting backlash from both sides of the housing debate. Tenant advocates pushed for a rent freeze, while landlords argued the hikes were insufficient to offset soaring operational costs.

In the commercial sector, Manhattan’s office market cooled significantly in Q2, with leasing volume dropping nearly 19% to 9.2 million square feet. Still, the first half of 2025 remained the busiest since 2014. Major leases included NYU at 770 Broadway and Amazon at 10 Bryant Park.

Separately, nonprofit Community Preservation Corp. is navigating a $5.8 billion portfolio of distressed rent-stabilized loans acquired from Signature Bank, with over 70% of the loans showing financial trouble. The group is working through loan modifications and has initiated 41 foreclosures affecting 2,200 units.

Meanwhile, real estate attorney Mark Nussbaum is seeking relief from mounting debts via an Assignment for the Benefit of Creditors process, following a $15 million escrow dispute recently dismissed in court.