Skip to content
Friday, October 23, 2026 · Today’s edition, 6:30 a.m. ETFri, Oct 23 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

Manhattan trophy office vacancy falls to 4.9% cycle low

JLL finds $300-per-square-foot leases arrived three times faster than the $200 benchmark, with new supply projected to fall to 1.5 million square feet a year.

4.9%cycle low

Follow this story

JLL · Institutional Real Estate, Inc.

At a glance

  1. Leasing above $200 per square foot accelerated, with JLL recording 40 transactions in the first half of 2026 against 59 across 2024 and 2025 combined.
  2. For an allocator or lender underwriting Manhattan office exposure, the 4.9% applies to trophy buildings rather than the whole market.
  3. The report, "NYC Office: A Market Waiting on Capital," projects new supply declining from an annual average of 7.8 million square feet between 2018 and 2023 to 1.5 million square feet a year through 2029.

Trophy office vacancy in Manhattan has fallen to a cycle-low 4.9%, below pre-pandemic levels, as tenants compete for limited premium space, according to a JLL report covered by IREI.

Leasing above $200 per square foot accelerated, with JLL recording 40 transactions in the first half of 2026 against 59 across 2024 and 2025 combined. Rents of $300 per square foot are becoming increasingly common, reaching that level three times faster than the previous $200 benchmark, the report found. The six-month total is more than two-thirds of the two-year figure.

For an allocator or lender underwriting Manhattan office exposure, the 4.9% applies to trophy buildings rather than the whole market. The report leaves open whether $300 rents represent a lasting shift in office pricing or a squeeze from limited trophy availability, a distinction that shapes renewal-spread assumptions at the next lease roll.

The report, "NYC Office: A Market Waiting on Capital," projects new supply declining from an annual average of 7.8 million square feet between 2018 and 2023 to 1.5 million square feet a year through 2029. Capital constraints continue to limit new development, which the report says could place additional upward pressure on premium office rents.

Reported by the Sectors desk from IREI. Published . Corrections

Related

Real Estate

KKR supplies $95 million 10-year loan for Brooklyn apartments

Bridge, Declaration Partners and Avery Hall are the sponsors; coupon and spread were not disclosed.

Real Estate

Grover Corlew buys 200 East Broward in Fort Lauderdale for $69.7 million

The Boca Raton buyer plans $20 million in amenities for the 75 percent-occupied, 1991-vintage tower.

Real Estate

Affinius Capital lends $97.9M to refinance D.C.'s Lydian apartments

The 324-unit Mount Vernon Triangle building, completed in 2018, carries roughly $302,000 of loan per unit as District rents slip.

Real Estate

U.S. large industrial new leases hit 92% of peak as renewals fall

Leasing volume still does not equal absorption; relocations and weaker renewals can leave space behind, CoStar says.

Real Estate

Lubert-Adler looks to sell 595,000 sq ft Philadelphia office

The Center City building is 99% leased with eight years of weighted average lease term; the report gives no asking price or loan terms.

Private Real Estate Dailyfrom Private Wealth Daily

Non-traded REITs, data centers, industrial and manager fundraising. Weekdays at 7:20 a.m. ET.

Free. Weekday mornings. Unsubscribe from any edition in one click.

From other sections