Manhattan Office Leasing Surges as Major Firms Lock in Space Across Midtown

Manhattan's office market is entering 2026 with momentum not seen since before the pandemic, as a string of high-profile lease signings and expansions have pushed availability rates to their lowest levels since 2020.

Major Deals Drive the Recovery

The activity has been broad-based, spanning financial services, technology, and professional services tenants. Among the most significant recent transactions:

JP Morgan Chase expanded its footprint by 139,000 square feet at Five Manhattan West, a Brookfield Properties tower, in early February. The banking giant had already grown to 497,000 square feet at 390 Madison Avenue following the opening of its new global headquarters at 270 Park Avenue late last year.

Bloomberg LP renewed its 496,000-square-foot lease at Global Holdings' 120 Park Avenue, while Millennium Management, the hedge fund, locked in 438,000 square feet at 399 Park Avenue. Both renewals were among the largest office commitments in Manhattan in recent months.

Moody's Corporation is reportedly in advanced discussions for a 400,000- to 460,000-square-foot consolidation at Brookfield Place, a deal that would rank among the largest new leases of 2026 if finalized.

Tech and AI Firms Fuel Demand

The tech sector has emerged as a meaningful driver of absorption. EliseAI, an artificial intelligence company, signed a 109,000-square-foot lease at 401 Fifth Avenue in January — a notable commitment for a sector that had pulled back from office space during the remote-work era. Kira Learning took 16,000 square feet at 11 Park Place, and WorkOS leased 6,000 square feet at 466 Broome Street in SoHo.

Burlington Stores expanded its corporate offices to 206,000 square feet at 1400 Broadway, and financial services firm StoneX grew to 95,000 square feet at 230 Park Avenue. Bank of Montreal added 82,000 square feet at Durst Organization's 151 West 42nd Street.

Investment Sales and Refinancing Activity

Capital markets activity has picked up alongside leasing. Empire State Realty Trust listed 250 West 57th Street with a $350 million asking price. Bain Capital provided $213 million in refinancing for 1375 Broadway in Midtown, and Brookfield completed a $173 million refinancing of 225 Liberty Street in Lower Manhattan.

On the sales side, Cayre Equities flipped 254 West 35th Street for $26 million, just one year after acquiring the property — a sign that investor appetite for Manhattan office assets is returning.

Interest Rate Outlook Provides Tailwind

The Federal Reserve's signaling of potential rate cuts in 2026 has given office landlords and investors reason for optimism. Lower borrowing costs could unlock refinancing opportunities for overleveraged office properties and encourage new investment activity. BXP (formerly Boston Properties), one of the largest office REITs, reported its strongest leasing quarter since 2019 in late 2025, and its stock has rallied alongside the broader REIT index.

With availability tightening and major tenants recommitting to physical office space, Manhattan appears to be turning a corner after years of elevated vacancy and uncertain demand.