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title: Midtown office mkt - 2025 wrapped
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Executive Summary - Tenant Perspective

| View in browser 2025 Wrapped Seeking Licensed RE Salesperson to Join Our Team! Executive Summary - Tenant Perspective   Market Snapshot Midtown Manhattan office leasing has quietly shifted from recovery to normalization. Based on on-the-ground transaction activity throughout 2025, tenants are no longer operating in a wait-and-see market - they are competing, committing, and making longer-term decisions with intention. By every measure we track: more deals, larger commitments, longer lease terms, and materially more competition for good space, 2025 was our most active year.   Key Observations Despite widespread predictions of tenant hesitation (congestion pricing, mayoral elections, etc.) decision-making remained active throughout the year. Requirements stayed live, tours continued, and deals moved forward. In many cases, delaying decisions reduced optionality rather than improving leverage. Demand is no longer confined to trophy or newly repositioned buildings. Well-located Midtown assets with efficient, smaller floor plates are now among the most competitive offerings, leasing faster due to fit, flexibility, and practicality. Since mid-year, most tenant-side transactions we worked on had a credible backup tenant right behind us - a notable shift from prior years when tenants could move slowly with little risk. Good space is being absorbed while internal discussions are still ongoing. Median lease terms have lengthened, signaling renewed confidence in Midtown as a durable operating location rather than a short-term hedge. Vacancy has tightened, absorption has been positive for over a year, and asking rents have stabilized in the high-$70s to low-$80s PSF range. Implications for Tenants Leverage still exists in Midtown, but it increasingly favors tenants who are prepared, informed, and decisive. The best outcomes are being achieved by companies that start early, define priorities clearly, and act when the right opportunity appears - rather than waiting for conditions to improve.   Until next year, Ben Ben Blumenthal Principal Broker \| Noah & Co.    The Best of the Month A strong end to the year for office leasing in NYC, capped by Bloomberg renewing its half-a-million square foot presence at 120 Park Avenue. So where else is the action happening? Staying Put - Law firm Thompson Coburn reupped its 46k SF space at 488 Madison - Apple's expansion at Penn 11 brings them over 550k SF - Tech platform Monday.com expanded again at 225 PAS - Anheuser-Busch renewed its 87k+ SF space at 119 West 24th Bigger and Better - Horizon Kinetics relocating to 19K SF in Rock Center - Vornado's latest pull to 2 Penn? French IT company Capgemini - Cypress Creek Renewables is taking ~ 10k SF at 530 Fifth - Tokio Marine Group consolidating 3 offices at 825 Third The good and the bad: what 2026 will bring for commercial real estate Read On New lawsuit filed to put a hold on the Midtown South rezoning plans Read On Grand Central expands! Durst rebrands 2 of its Third Ave towers  Read On Gaming comission officially approves all 3 NYC casino bids Read On Citibike prices set to increase once again in 2026 Read On Zohran Mamdani takes office: what's next with his "housing mandate" Read On Noah & Co., 600 Fifth Avenue, 2nd fl., New York, NY 10020, (212) 947-7120 Manage Preferences |
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