Soaring Office Rents in Manhattan
Office rental prices in Manhattan are soaring, with a record 313 leases kicking off at $100 per square foot in 2025. Some in the industry believe that rents could reach as high as $250, although they caution there’s a risk the market might cool off.
According to JLL’s recent analysis, there were transactions of $100 or more in 125 buildings, an uptick from 85 the previous year. The total area covered by these pricier leases hit 9.9 million square feet, just surpassing last year’s 9.8 million square feet.
While JLL hasn’t disclosed specific tenants, other brokerage sources indicated that One Vanderbilt, managed by SL Green, fetched the highest price per square foot for the second consecutive year. Kyndryl, an infrastructure services firm, signed a lease for an astonishing $305 psf for a modest 6,300 square foot space.
This unparalleled pricing trend seems to be driven by tenants craving luxury office spaces with panoramic views. Furthermore, JLL noted that robust demand coupled with a dwindling supply has reduced overall availability in Manhattan to 13.2%, down from nearly 20% a year ago. This indicates a tighter commercial market, particularly around Park Avenue, the World Trade Center, and Hudson Yards.
“We expect that leases over $100 will account for about one-third of all leases signed in Manhattan in 2025,” said Cynthia Wasserberger, who helped compile the report.
Interestingly, firms in the technology, media, and information sectors are behind 31% of the high-end deals.
“The combination of extreme supply shortages, rising construction costs, and a general increase in demand is driving up prices,” Wasserberger noted. Still, she added that incentives like rent-free periods and tenant improvements are still prevalent. “It’s entirely possible that by 2026, more luxury properties will list rents above $200 regularly,” she mused.
The once elusive $100 price point has now become typical for luxury offices by 2025. Rents at the very top tier are roughly 15% higher than Manhattan’s average of about $85 psf.
Some notable recent leases include $120 psf at 500 Park Avenue, $105-110 psf at 75 Rockefeller Plaza, and over $100 psf on Madison Avenue. Prices ranged from $140 to $170 at various locations on 320 Park Avenue, and $135 on the 54th floor of 30 Rock.
However, a leasing agent not affiliated with JLL expressed some skepticism, saying, “We might be nearing the peak of what can be charged. Some clients are showing hesitance about these figures, even in smaller spaces.”
While JLL hasn’t identified specific tenants for newer leases, external brokers indicated that significant deals included MGX and Trust Co., both signing for over $200 per square foot at Related’s 50 Hudson Yards. Additionally, Current, a mobile banking service, reportedly paid over $100 psf at Vornado’s 2 Penn.
Monday.com is another significant player, securing a 138,399-square-foot space at 225-233 Park Ave. South, while Bank of India is moving into 41,000 square feet at 425 Park Avenue. Shopify is also scaling up with a 24,130-square-foot expansion at 85 Tenth Ave.
At 9 West 57th St., there are asking rents exceeding $200 psf. The Soloviev Group announced three new tenants for 2025—Hess Group, Beaconlight Capital, and Platinum Equity Advisors—occupying over 40,000 square feet in total.
Reports suggest that at the Seagram Building on 375 Park Avenue, rents are starting at $200, with Mubadala Investments eyeing expansion there at around $250 psf.
“Even with new construction, rents for premium office spaces are expected to rise, as availability remains tight,” Wasserberger predicted.
That said, she did note, “The real question is whether tenants believe these price points are sustainable or if they’ll search for alternatives.”
