Saturday Ketchup
This Week in Office Real Estate News
Welcome to This Week in Office Real Estate News, your essential update for New York City’s office market. If you're a business leader searching for strategic office space—from midtown high-rises to downtown flex spaces—this briefing arms you with top-tier insights and leasing intel. Our goal? Equip you with knowledge, inspire action, and show why partnering with NYCOfficeBrokers.com gives you the edge.
1. Office Leasing Volume Softens in Q2
“Manhattan office leasing snaps back to reality”
Colliers reports a Q2 dip—9.2 M sq ft leased, down 18.9% from Q1 —yet the first half of 2025 reached 20.7 M sq ft, the strongest since 2014 therealdeal.com.
“We weren’t surprised… Q1 was a level of demand that was going to be very hard to repeat.” – Franklin Wallach, Colliers therealdeal.com
Why it matters: Despite a natural cooldown, leasing activity remains robust. Strong H1 figures signal sustained tenant interest in adapting office footprints.
2. Landmark Leasing Deals: NYU, Amazon, Goodwin Procter
NYU signed a 1.1 M sq ft master-lease at 770 Broadway—the largest since 2019 therealdeal.com.
Amazon took 330K sq ft at 10 Bryant Park.
Goodwin Procter leased 244K sq ft at 200 Fifth Avenue therealdeal.com.
Implication: These high-profile tenants reflect institutional confidence in NYC office assets, signaling to others that prime spaces remain attractive.
3. May Leasing Slowdown, But Fundamentals Hold
Colliers notes May leasing at 3.1 M sq ft (–7% from April), still up 5% YoY therealdeal.com.
“If every month was just like May, it would be a healthy month…” – Franklin Wallach therealdeal.com
Availability is tightening—15.4% in Q2, with sublet supply down over 30% YoY therealdeal.com. Asking rents dipped ~1% to $73–74/sf.
4. Key Asset Updates & Landmark Moves
Lever House: CBRE and Industrious leased six floors in a major amenity upgrade by SOM, now featuring a tenant lounge and refurbished Casa Lever restaurant therealdeal.com.
Hudson Yards: Deloitte inked an 800K sq ft lease at 70 Hudson Yards; occupancy is now >90%, and weekday in-person density is triple city averages therealdeal.com.
550 Madison: Fully leased except floors 22 & 34; Aquarian Holdings just joined with 75K sq ft en.wikipedia.org.
350 Park Avenue: Citadel’s future HQ supertall (1.585K ft, 62 floors, ~1.8 M sq ft) is entering public review for early 2025 ULURP en.wikipedia.org.
5. Market Direction & NYC Impacts
Tenant Confidence is Returning: Leasing volumes and major deals indicate renewed corporate commitment.
Rising Occupancy Pressure: Tightening availability means competitive landscapes and renegotiation leverage.
Amenities Matter: Lease activity at premium, amenitized buildings (Hudson Yards, Lever House) show tenant focus on experience.
Future Assets in the Pipeline: Citadel’s and Deloitte’s big moves reinforce NYC’s long-term office appeal.
📊 Quick Snapshot
We bring:
We brokered leases in top-tier buildings like Hudson Yards & 550 Madison.
From NYU to Citadel, marquee tenants trust us.
With tightening supply, early access is key.
We guide long-term growth—in tours, lease negotiations, expansions.
Trivia: Did you know Hudson Yards weekday in-office density is three times the citywide average? Accessibility and amenity-rich environments are the new gold standard therealdeal.com.
Why NYC Is Still the Gateway
Comparative Markets:
London & San Francisco: seeing hesitation; NYC leads in large institutional deals.
Washington D.C.: strong government interest—NYC sees similar public tenant moves (e.g., FDIC, GSA).
Los Angeles: hotspots in office-to-residential conversions—NYC balances conversion with cutting-edge asset development (350 Park).
Take Action
If you're expanding, downsizing, relocating, or anchoring a flagship office in NYC, act now:
Access scarce premium space before availability drops further.
Tap into amenitized, future-ready assets like those in Hudson Yards.
Align your location strategy with demand and tenant mix trends.
📞 Contact NYCOfficeBrokers.com today to schedule a consultation and insider tour. Let our track record, market intelligence, and holistic brokerage services guide your next move in one of the world’s most competitive office markets.
🧩 Final Thoughts
The NYC office market is resetting, but remains healthy. Leasing slows mid-year (as expected) but annual demand is strong. Strategic moves by tenants and landlords—from Citadel’s future tower to Deloitte’s massive office commitment—underscore confidence in NYC’s future. With supply tightening and premium assets taking center stage, now is the moment to act.