Story perspectives

Manhattan office vacancy hits 13% low, leasing soars

7/10/2026

Summary

Story summary

United States Colliers reported Manhattan office availability fell to 13.0% in Q2 2026, the lowest level since October 2020.
Effective supply, after removing conversion-eligible, special-serviced and distant properties, dropped to about 11.1% (58.23 million square feet).
Manhattan logged 22.8 million square feet of leasing in the first half of 2026, its strongest half-year since 2002.
Q2 2026 leases reached 11.02 million square feet, 29.4% above the five-year average and 19% higher year over year.

History

Historical Context

After the September 11, 2001 attacks, Manhattan office vacancy surged to roughly 20 % in 2002, prompting a prolonged leasing slump. The Port Authority reported 2.5 million square feet of vacant space, while JPMorgan Chase and Bloomberg each reclaimed over 1 million square feet, stabilizing demand. Similarly, Colliers International notes 2026 vacancy fell to 13 % and leasing hit 22.8 million square feet, echoing the post-9/11 recovery surge. The pattern suggests that major shocks reshape Manhattan’s office market, with future cycles likely driven by economic resilience and adaptive reuse.

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Story summary

United States Colliers reported Manhattan office availability fell to 13.0% in Q2 2026, the lowest level since October 2020.
Effective supply, after removing conversion-eligible, special-serviced and distant properties, dropped to about 11.1% (58.23 million square feet).
Manhattan logged 22.8 million square feet of leasing in the first half of 2026, its strongest half-year since 2002.
Q2 2026 leases reached 11.02 million square feet, 29.4% above the five-year average and 19% higher year over year.

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