**Manhattan Office Availability Hits Four-Year Low as Lease Terms Rise**
Manhattan’s office market is showing signs of tightening, with availability dropping to its lowest level in more than four years. According to Avison Young’s latest report, office availability in Manhattan fell 240 basis points year-over-year, landing at 17.3% in the first quarter of 2025.
One of the most notable trends is the surge in leasing activity among trophy properties, which now represent 61.6% of all leasing—a sharp rise from the previous year.
Lease terms are also lengthening across the board. Trophy and Class A buildings have seen average lease terms increase by 11.5% and 11.7%, reaching 129 and 124 months, respectively.
“Market-wide, the average lease term has risen to 118 months, which is 3.9% above the 2015–2019 average of 114 months, indicating a broader shift toward longer commitments,” said Danny Mangru, Senior Manager and U.S. Office Lead of Market Intelligence at Avison Young. “This is evident in Class B/C buildings, where average lease terms have surged by 30.5% year-over-year to 108 months—the highest since April 2019. As top-tier space becomes scarcer, demand is trickling down to more widely available B/C properties, prompting longer commitments there as well.”
Pictured: Brookfield Place in Lower Manhattan, where Jane Street Capital expanded to nearly one million square feet during the first quarter.
