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AI Boom Fuels Manhattan Office Leasing Surge in 2025

3/20/2026

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Story summary
  • Artificial intelligence firms are driving a rebound in Manhattan's office leasing, the strongest in over a decade.
  • In 2025, leasing reached 42.9 million square feet as OpenAI and EliseAI expanded their footprints.
  • Rents rose 2.8% to $77.57 per square foot due to rising demand and limited construction.
  • New York City remains the second-largest U.S. tech hub, housing over 9% of the nation's AI workforce and 8,750+ startups.