Office tenants signed approximately 410 million square feet of space in 2025, marking a meaningful year-over-year increase. Leasing volume rose more than 5% compared to weak activity recorded during 2024.
In fact, 2024 produced the lowest office leasing totals in 15 years, excluding 2020. Momentum steadily improved throughout 2025, signaling cautious optimism across office markets. The year ended with three consecutive quarters exceeding 100 million square feet leased. Notably, that milestone had not occurred since early 2022.
These figures include all newly signed office leases recorded during 2025. They also include estimated leases not yet formally captured by CoStar Research. Lease renewals were excluded because they rarely impact overall occupancy trends.
New York City remained a leader in the national recovery. Office leasing volume in New York rose more than 20% from 2024 levels. Additionally, activity exceeded the city’s late-2010s average by approximately 10%.
Despite gains, office leasing remains below levels typical in the late 2010s nationally. Transaction volume reached nearly 30,000 lease deals during 2025. That total reflects a 5% increase over the 2015 to 2019 average. However, average lease sizes continued to shrink across most markets. The typical lease measured roughly 3,500 square feet in 2025. That figure sits more than 15% below pre-pandemic deal-size averages.
Smaller transactions and uneven city performance continue to define the office recovery.
About CORFAC International – New York
CORFAC International – New York, an extension of CORFAC International delivers over 90 years of Expertise for Commercial Real Estate in the Greater NY Metro Area. Comprised of a partnership of WCRE & Chilmark Real Estate Services, CORFAC International – New York provides practical guidance, analyzes crucial transaction details for optimal workspaces and deals, by leveraging market knowledge to drive client success. As committed advocates, we deliver measurable results, serving global clients with expert advisory and property management. We match your dedication with proven expertise.
