New York City Update
Leasing Demand in Manhattan’s Office Market Could Hit Levels Not Seen Since 2019: Report
NEW YORK—A recently released report on the state of the New York City office market showed the strongest volume year-to-date since the onset of the COVID pandemic in 2019.
Colliers in its August 2025 report noted that the Manhattan office market is on pace for more than 40-million/sf of yearly demand for the first time since 2019 while the availability rate has tightened or remained stable for 18 consecutive months.
Manhattan’s monthly leasing activity increased since July. Meanwhile, the availability rate tightened by 0.2 percentage points to 15.0% —the lowest rate since January 2021—with 79.50 million/sf of total availability. In addition, Manhattan’s asking rent average increased 1.0% to $74.73/sf. Although higher since July, the average was lower by 6.0% since March 2020, the brokerage firm reported.
Key Report Takeaways:
- At 3.70 million/sf, Manhattan’s monthly leasing activity increased by more than one-fifth since July and was 36.2% above the 10-year monthly average. Additionally, demand was higher by 41.0%, year over year.
- There was 27.34 million/sf of leasing velocity during the first eight months of 2025. If demand continues at the same pace for the remainder of 2025, Manhattan’s yearly volume would exceed 40 million/sf for the first time since 2019.
- Manhattan’s sublet availability diminished for the 11th consecutive month. At 12.95 million/sf, this was the tightest sublet supply since July 2020.
- The asking rent average increased during the month in Midtown, Midtown South, Downtown and in the overall Manhattan market.
- The largest transactions in August included Deloitte’s 807,000/sf new lease at 70 Hudson Yards—Manhattan’s third-largest lease so far this year—and WeWork’s 259,000/sf expansion at 1440 Broadway. There was 27.34 million/sf of leasing velocity during the first eight months of 2025.
NYSDOT Dismisses Two Design Options On Cross Bronx Expressway Expansion
ALBANY—New York State Department of Transportation Commissioner Marie Therese Dominguez announced on Aug. 28 the department has narrowed the number of potential design options being considered for the project to replace or rehabilitate five bridges along the Cross Bronx Expressway.
Options 1A and 1B, which would have retained a traffic diversion structure and provided post-construction access to it for local-road vehicles or buses, have been dismissed from further consideration based on feedback from the local community.
The dismissal of these options will be documented in the forthcoming Draft Environmental Assessment report. All of the remaining options—including those that would provide improved access for bicyclists and pedestrians—will continue to be evaluated.
“The public has spoken, and we are listening,” NYSDOT Commissioner Dominguez said. “Based on our public outreach efforts, it has become crystal clear that Options 1A and 1B do not have community support, so we are not advancing them. We have said from the very start of this process that it would be shaped by public input, and we meant it. Working in partnership with the community on this project we are determined to work together to achieve a meaningful and necessary transportation investment for the Bronx.”
The project to replace or rehabilitate five bridges on the Cross Bronx Expressway is necessary to enhance public safety and preserve a vital travel artery that serves approximately 150,000 vehicles each day. This project is not an expansion of the highway. The bridges, which are located between Boston Road and Rosedale Avenue, were constructed between 1947 and 1958, and do not meet modern design standards for safety. They have suffered significant deterioration and have reached the end of their service lives, NYSDOT officials stated.
As part of the ongoing environmental review process, several design options are being considered to accommodate traffic during construction and provide multi-modal connectivity. Some of the options include the use of a traffic diversion structure (TDS) to detour expressway traffic away from the construction area, easing congestion and allowing construction to proceed at an expedited pace. Option 1A would have turned the TDS into a four-lane, post-construction roadway for local traffic and buses with a shared use path for pedestrians and cyclists. Option 1B would have converted the TDS into a two-lane post-construction roadway for exclusive bus use with a shared use path.
According to the NYSDOT website, the project is expected to go out to bid in the spring of 2026 with construction to start shortly thereafter. Construction is to be completed by the summer of 2030. The preliminary construction cost for the project, according to the NYSDOT website is $890 million.
Earlier this year, during a series of public meetings, community members expressed little support for these two options (1A & 1B) and voiced concerns related to traffic on the new structure. As a result of that feedback, those options were dismissed.
The remaining options, which either do not include a TDS or would limit its post-construction access to pedestrians and cyclists, will continue to be reviewed as part of the ongoing environmental review process.
The review process will be documented in the forthcoming Draft Environmental Assessment, which NYSDOT expects to be completed this fall. NYSDOT appreciates the community engagement in this project to date and looks forward to continued engagement as the project proceeds. As required by state and federal law, a public comment period will be in place after the formal release of the Draft Environmental Assessment.
Published: September 15, 2025.