A version of this article originally appeared in CNBC’s Property Play newsletter with Diana Olick. Property Play explores emerging and evolving opportunities across the real estate investment landscape, from individual investors to venture capital firms, private equity funds, family offices, institutional investors, and publicly traded companies.
Office leasing activity in Manhattan surged sharply in the fourth quarter of 2025, fueled by continued return-to-office momentum and renewed hiring across the technology sector—particularly among companies focused on artificial intelligence.
Leasing volume jumped more than 25% quarter over quarter, reaching 11.87 million square feet. Demand was 16% higher year over year, nearly 52% above the five-year quarterly average, and 43.5% above the 10-year average, underscoring a meaningful acceleration in market activity.
The fourth quarter marked Manhattan’s strongest leasing performance since Q4 2019, signaling a decisive shift toward recovery. For the full year, office leasing volume reached its highest level since 2019 and finished just 2.4% below pre-pandemic totals, highlighting the growing role of tech and AI-driven tenants in reshaping New York City’s office market.
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