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title: midtown office market in real time
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Midtown Office Update: April 2025 - bottomed out and signs of an upswing continue coming to light

| View in browser April 2025 Built School Space \| Click for Details Midtown Office Market in Real Time   As we close out the first quarter of 2025, I wanted to share some strengthening sentiments in the following areas:   1. Sublease space is quietly getting absorbed The glut that flooded Midtown from 2020 through 2023 is history. It didn’t go in dramatic headlines, but deal-by-deal, building-by-building, and floor-by-floor. The majority of spaces that sat idle for 18 months have either been subleased, pulled, or expired. We're even seeing it first-hand: a client that hired us in 2024, just decided to pull their space from the sublease market after attendance began to pick up.   2. Formerly “Desperate” landlords aren’t so desperate anymore The gap between asking and taking rent has narrowed. Concessions are still healthy, but they’re no longer expanding. Landlords who were throwing in the kitchen sink last year are now holding the line—or even saying no. If you’re expecting a 40% haircut or two years of free rent, you’re late. Those deals happened in 2021 and 2022. Today’s market has stabilized—just not in tenants’ favor. One recent example: a client we represented 16 months ago had 2-3x more options for the exact same requirement we’re working on now. Not only is the menu smaller, the prices are 10% higher. Same need, same location—new market reality.   3. Good space is moving The stuff that shows well and is priced right isn’t sitting. Multiple tours, quick decisions, and competitive interest are back—for the right product. It’s not just the new construction, “flight-to-quality” stuff; it’s anything with an efficient layout, strong location, and competitive landlord.   4. Capital is tiptoeing back in Even on the investment side, there’s movement. Eighteen months ago, ‘Midtown office’ was a falling knife for lenders and investors. Now, there’s enough price discovery to underwrite the vacancy and draw a line to profitability. It’s not a wave of activity, but it’s no longer a freeze in the liquity cycle that I touched on back in January.   As the cyclical nature of the Mitown office market continues, our team remains on the streets with a pulse on the market and a stream of real-time updates ready to share.   Until next month, Ben Ben Blumenthal Principal Broker \| Noah & Co.    The Best of the Month Deals over the last month followed a similar trend as law firm transactions dominated the news. Amongst the movement:  Kellner Herlihy renewed at 480 PAS, Pachulski Stang is relocating to 1700 Broadway, Dorsey & Whitney signed at 1301 AoA, and Goodwin Procter is negotiating a move to 200 Fifth Ave. It hasn't been all about law: < 10k SF - Newly formed Parkinson's Wellness Foundation opening at 133 E. 58th - In Record Time renewed its 5k SF space at 505 Eighth Ave. - Swimwear brand Onia taking an entire floor at 29 W. 38th - Asian American Foundation is relocating to 322 Eighth 10k+ SF - Palm Bay International inked an 11k+ SF deal at 565 Fifth - Asset Manager Reckoner Capital moving HQ to 11 East 26th St. - Octus moving to 43k SF at 295 Fifth Ave - Swiss firm Novartis staying in its 16K SF suite at 10 Bryant Park Midtown surge drives office market back to pre-pandemic levels Read On MTA unveils new NYC subway map for the first time in 50 years Read On Extell begins lining up $1.3B in financing for "The Torch" Read On $37B: NYC real estate related revenue hit a record in 2024 Read On NY Liberty to build $80M practice facility in Greenpoint Read On Metro-North launches shorter rides for commutes into NYC Read On Noah & Co., 600 Fifth Avenue, 2nd fl., New York, NY 10020, (212) 947-7120 Manage Preferences |
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