Law firms and technology drive demand as Manhattan’s office market tightens

Manhattan office leasing totaled 10.8 million square feet (msf) in Q2 2026, down from Q1’s elevated pace but up 22.8% year over year, lifting first-half activity to 23.2 msf, the strongest first-half total since 2013. New York City office-using employment also gained momentum, rising 1.6% year over year, a tailwind to tenant demand. Demand was concentrated among legal services and technology, advertising, media and information (TAMI) tenants, which accounted for nine of the 10 largest leases. Law firms leased 2.2 msf, with commitments from Simpson Thacher & Bartlett, Cleary Gottlieb, Alston & Bird, McDermott Will & Schulte and Baker McKenzie underscoring the sector’s preference for top-quality, well-located assets. Financial services remained active but less prominent among major transactions.

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