Manhattan’s Available Office Supply Falls to Lowest Level Since 2020: Colliers

Despite a slight quarter-over-quarter decline in new deals, Manhattan’s office market saw a robust third quarter of 2026, with leasing volume exceeding both the five-year and 10-year quarterly averages, according to the latest research from Colliers. 

Manhattan office leasing totaled 10.06 million square feet in July, August and September, driven by large new leases and tenant expansions. The third quarter’s leasing total was 16.2 percent above the five-year quarterly average of 8.66 million square feet and 19.2 percent higher than the 10-year average of 8.44 million square feet. Still, the period’s leasing volume was 8.7 percent less than the 11.02 million square feet leased during the second quarter of 2026. 

The third quarter marked several milestones in Manhattan’s office leasing, including the first time since 2002 that leasing surpassed 10 million square feet in four consecutive quarters, as well as the strongest third quarter of office activity in Midtown South on record. Midtown South leasing volume reached 4.75 million square feet in the third quarter, driven by large transactions by Anthropic, Havas Health and Snapchat parent company Snap.

The third quarter also recorded the lowest available supply of office space in Manhattan since August 2020 at 64.76 million square feet, according to Colliers. Manhattan’s office availability rate was 12.4 percent in the third quarter, representing the 10th consecutive quarter in which availability tightened — the longest stretch since 2007, the firm said. 

Manhattan’s average office asking rents also rose to the highest levels since July 2020. The average asking rent was $85.08 per square foot in the third quarter, compared to $78.03 per square foot in the second quarter. 

The top five leases of the third quarter were for law firm Proskauer Rose, which expanded to 478,000 square feet at 11 Times Square; San Francisco-based AI firm Anthropic’s 465,630-square-foot deal at 330 Hudson Street; wellness network Havas Health’s expansion deal for  254,118 square feet at 200 Madison Avenue; entertainment giant NBC Universal’s 244,185-square-foot lease at 1221 Avenue of the Americas; and law firm Morgan, Lewis & Bockius’ 210,000-square-foot deal at 1251 Avenue of the Americas. 

“The Manhattan office market’s recovery continued at a rapid pace throughout the summer and into the early days of autumn,” Franklin Wallach, executive managing director of research and  business development for Colliers in New York, said in a statement.

“As we enter the final quarter of the year, the market is beginning a new chapter after achieving several critical recovery milestones in the third quarter,” Wallach added. “Notably, Class A pricing reached a new high, Midtown became the first major Manhattan market to return to its pre-pandemic level of availability, and Midtown South recorded the strongest third quarter of activity on record.” 

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.