Overall commercial vacancy rates continued to decline through the end of 2025, the business sector’s positive outlook on New York City’s employment and post-pandemic return to office trends.
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Commercial building rents increased slightly (46¢) compared to Q4 2024, continuing a reversal of the downward slide of commercial building rents in 2024.
Year-to-date absorption increased 221% in 2025 compared to 2024, with over 7.5 million more square feet leased than vacated in 2025.
New York City’s commercial construction pipeline was the second largest nationally at the end of 2025, with 2.34 million square feet under construction.
Moody’s enacted the largest new lease transaction of Q4 2025, leasing over 457,000 square feet of office space at 200 Liberty Street, which is owned by Brookfield Properties. (Moody’s and Brookfield Properties are members of the Partnership for New York City.)
RXR and Rudin completed two of the largest sales transactions of Q4 2025, selling over 775,000 and 340,000 square feet of commercial office space respectively. (RXR and Rudin are members of the Partnership for New York City.)
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New York City led the country in total office sales value in 2025, with nearly $7.8 billion worth of office space sold during the year, 39% higher than second place Bay Area.
New Yorkers are paying more for housing than ever before, and the construction pipeline isn’t catching up.
