CBRE

FIGURES|MIDTOWNMANHATTAN|Q42025

Absorptionreachedhighestannualtotal

since1997

5.19M

LeasingActivity

Note:Arrowsindicatechangefrompreviousquarter.

2.82M

NetAbsorption

13.4%

AvailabilityRate

QUICKFACTS

-Leasingactivitytotaled5.19millionsq.ft.inQ4,36%aheadofthefive-yearquarterlyaverageof3.81millionsq.ft.

-Year-endleasingactivitytotaled19.47millionsq.ft.,up16%fromtheprioryear.

-Renewalstotaled1.86millionsq.ft.inQ4,bringingtheyear-endtotalto5.34millionsq.ft.

-Theavailabilityratewasdown110basispoints(bps)fromlastquarterto13.4%andwasdown300bpsfromayearago.

-Netabsorptionwaspositive2.82millionsq.ft.inQ4,bringingtheyear-endtotaltopositive

7.88millionsq.ft.

-At$84.24persq.ft.,theaverageaskingrentwasup1%quarter-over-quarterand3%year-over-year.

-Thesubleaseavailabilityratewasdown50bpsfromlastquarterto2.3%,withtheaverageaskingrentdown2%fromoneyearagoto$63.08persq.ft.

10.6%

VacancyRate

$84.24

AverageAskingRent

MarketOverview

Midtownclosed2025onahighnote,deliveringrobustQ4leasingactivitythatpushedtheyear-end

totalto19.47millionsq.ft.,thehighestlevelsince2018—andamongthestrongestonrecord.Intense

demanddroveasharpdropinavailability,asabsorptionreacheditshighestmarkinnearly30years.Asaresult,theavailabilityratedeclinedto13.4%,movingclosertopre-pandemiclevelof11.8%.

Afteryearsofactivityconcentratedincoredistricts,limitedavailabilityinthoseareaspushedtenantdemandtosecondaryandtertiarydistrictsin2025.Despitethegeographicshift,large-blockusers

continuedtofavorhighqualityassets.Lookingahead,imminentdevelopmentswillbecriticalasprimeblocksbecomeincreasinglyscarce.RenewalswereprominentinQ4’slargestdealsandareexpectedtoriseamidtighteningsupply.

Askingrentspostedmodestgrowth,drivenbylimitedavailabilityinhigh-pricedassets,butwereheldbackbyalingeringsupplyofchallengedspace.WhileMidtown’soverallaskingrentsawonlyslight

quarterlyandannualgains,top-tierassetswithstrongleasingmomentumrecordedmorepronouncedannualincreases.

1CBRERESEARCH?2026CBRE,INC.

FIGURES|MIDTOWNMANHATTAN|Q42025

2CBRERESEARCH?2026CBRE,INC.

EconomicOverview

Nationally,theeconomyissendingmixedsignals.Financialmarketsarefocusedontheupside,particularlyonAI’ssizablecontributiontogrowthinrecentquarters.Someindicatorsof

businessactivity,suchascapitalgoodsorders,areimproving,andstrengtheningcreditmarketsarehelpingusherrealestateintoanewcycle.

Thepicturegetsmurkierwhenlookingathouseholdsandlabortrends.Consumerconfidenceremainsweak,withspendingreportedlydrivenbyasmallersegmentofaffluenthouseholds,whileasofterlabormarkethasentereda“slowtohire,slowtofire”phaseforcompanies–atrendthatislikelytolastafewquarters.Oneconsequenceofthisissofterinflationandlong-termbondyieldstrendingjustbelow4%byH22026.ThismosaicofdatasupportsCBRE’s

outlookforsteadyannualaverageGDPgrowthof2%in2026,atouchsofterthanin2025.

InNewYorkCity,thelabormarketalsoslowedin2025,thoughsomeaspectsremainedresilient.Office-usingemployment(OUE)fellinearly2025butrecoveredto1.86millionjobsasof

November2025(themostrecentdataavailable),lessthan1%shyoftheall-timehigh.Financialserviceswasoneofthekeysectorsthatshedjobsin2025,totaling507,000jobsasof

November2025,downfrom514,000atyear-end2024.Amongthesectorspostingthemost

gainsduringtheyearwereInformationservicesandaccounting,whilelegalservicesremainedroughlyonparwithitsyear-end2024level.NYC’sunemploymentratesteadilydeclinedduringthefirsthalfof2025beforerisinginrecentmonthsandfinishingNovember2025at5.5%.At

thislevel,itwasdown10bpsfromyear-end2024buthigherthanthenationalrateof4.6%.

LeasingActivity

Leasingactivityremainedstrongthroughyear-end,totaling5.19millionsq.ft.inQ4—36%abovethefive-yearquarterlyaverage,though8%belowlastquarter.Thismarkstheninthstraight

quarterofactivitysurpassingthefive-yearquarterlyaverage,reinforcingMidtown’sreturntopre-2020levels.Full-yearleasingreached19.47millionsq.ft.,up16%from2024andthehighestannualtotalsince2018.RenewalsalsosurgedinQ4,hitting1.86millionsq.ft.—thelargest

quarterlytotalof2025and40%abovethefive-yearaverage.However,annualrenewalvolumeendedat5.34millionsq.ft.,35%belowlastyear’slevel.

FIGURE1:TopLeaseTransactionsforQ42025

Size

(Sq.Ft.)

Deal

Type

Sublet/

Direct

Tenant

Address

495,753

R

D

Bloomberg

120ParkAvenue

361,569

R

D

GibsonDunn&Crutcher

200ParkAvenue

227,683

L

D

CVStarr&Company

343MadisonAvenue

202,875

L

D

Natixis

1633Broadway

177,707

R

D

AMCNetworks

11PennPlaza

Source:CBREResearch,Q42025.Lease(L),Renewal(R),Expansion(E),RenewalandExpansion(RE),Direct(D),Sublet(S).

FIGURE2:LeasingActivity|QuarterlyHistorical

MSF

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Q12021

Q22021

Q32021

Q42021

Q12022

Q22022

Q32022

Q42022

Q12023

Q22023

Q32023

Q42023

Q12024

Q22024

Q32024

Q42024

Q12025

Q22025

Q32025

Q42025

QuarterlyLeasingActivity5YQuarterlyAvg.

Source:CBREResearch,Q42025.

FIGURES|MIDTOWNMANHATTAN|Q42025

3CBRERESEARCH?2026CBRE,INC.

FinancialservicesremainedMidtown’sdominantleasingdriverinQ4—astreaknowspanning21

consecutivequarters.Fourdealsover100,000sq.ft.propelledthesector’sperformance,whichaccountedfor44%ofQ4activityandfaroutpacedthenextstrongestindustries:apparel/retail(11%)andinsurance(11%).For2025overall,financialservicesledwith38%ofallleasingactivity,followedbylawfirms(12%)andtechnologycompanies(10%).

AfteryearsofMidtown’scoredistricts(Plaza,SixthAvenue/Rockefeller,Fifth/Madison,Park

Avenue,andGrandCentral)dominatingleasing,PennDistrict/HudsonYardsclaimedthetop

spotforthesecondstraightquarter.Thedistrictlogged1.26millionsq.ft.inQ4,98%abovethefive-yearaverage,but16%belowQ3levels.Activitywasfueledbyfourleasesover100,000sq.ft.,ledbyRippling’s133,000-sq.-ft.dealat330West34thStreetandRobinhood’s125,000-sq.-ft.commitmentat2PennPlaza.Thisbroughtthedistrict’syear-endtotalto4.09millionsq.ft.,35%abovelastyear’stotal,andthehighesttallyofanydistrictinManhattan.

WhilelimitedqualitysupplyinMidtown’scorehaspushedtenantstoexplorealternateareas,largeoccupiersremainfocusedontop-tierassets.In2025,77%ofalltransactionsover50,000sq.ft.occurredinBetterBuildings1,underscoringthepreferenceforhigh-qualityspace.Thistrendhighlightsthat,evenasgeographyshifts,assetqualityremainsthedefiningfactorfor

largeoccupiers’leasingdecisions.Lookingahead,thescarcityofpremiumblocksislikelytointensifycompetitionforthesebuildings,drivingbothrentalgrowthandrenewalactivity.

Midtown’scoredistricts,whichhistoricallyaveraged60%ofleasingactivityfrom2020to2025,accountedfor54%inQ42025,slightlybelowtrendbutstillrobust.GrandCentralledthecorewith992,000sq.ft.ofleasingactivity,41%abovethefive-yearquarterlyaverageand40%

higherthanlastquarter.OutsideofCVStarr&Company’s228,000-sq.-ft.commitmentatthe

future343MadisonAvenue,activitywasdominatedbysmallerdealsunder25,000sq.ft.,whichrepresented52%ofthedistrict’stotalleasingactivityduringthequarter.Forthefullyear,GrandCentralrecorded3.52millionsq.ft.,an8%increaseover2024.

SixthAvenue/Rockefellerrecorded861,000sq.ft.ofleasingactivityinQ4,27%abovethefive-yearquarterlyaveragebut32%belowQ3.Fortheyear,thedistrictreached3.97millionsq.ft.—thesecond-highesttotalinMidtown,trailingonlyPennDistrict/HudsonYards.Leasingwas

FIGURE3:LeasingActivity|ByDistrict

ThousandSF

1,400

1,200

1,000

800

600

400

200

0

pai'

Q420255YQuarterlyAvg.

Source:CBREResearch,Q42025.

FIGURE4:NetAbsorption&AvailabilityRate|Historical

MSF

10.0

8.0

6.0

4.0

2.0

0.0

-2.0

-4.0

-6.0

-8.0

-10.0

-12.0

7.88

13.4%

2016201720182019202020212022202320242025

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

mmNetAbsorptionAvailabilityRate

Source:CBREResearch,Q42025.

FIGURES|MIDTOWNMANHATTAN|Q42025

4CBRERESEARCH?2026CBRE,INC.

drivenprimarilybyfinancialservicesandlawfirms,whichtogetheraccountedfor61%ofthedistrict’s2025activity(36%and25%,respectively).

NetAbsorptionandAvailability

Midtown’savailablesupplytightenedinQ42025,drivenbystrongdemandandminimalnewadditions.Absorptionsurgedto2.82millionsq.ft.,thehighestquarterlytotalsinceQ22000,whichpushedtheavailabilityratedown110bpsto13.4%,itslowestquarterlylevelsinceQ2

2020.Midtownhasregisteredsixconsecutivequartersofpositiveabsorptiontotaling12.61

millionsq.ft.overthatsix-quarterspan—thestrongestsustainedrunonrecord.Newsupplyadditionswereconstrained,withonlysixspacesover100,000sq.ft.enteringthemarketinQ42025.Fortheyear,absorptionreached7.88millionsq.ft.,thehighestannualtotalsince1997,underscoringthedepthofdemandandthetighteningmarketconditions.

Availablesubleasespacefellto5.85millionsq.ft.inQ4,markinga52%declinefromtheFebruary2023peak.Subleaseinventorynowaccountsforjust18%ofMidtown’stotalavailabilityandsits15%belowyear-end2019levels.

Midtown’scoredistrictssawsupplydecline,nearingtheequilibriumrangeof10to12%.The

aggregateavailabilityrateinthismarketsegmentforallqualitytiersfellto12.1%inQ4.High-

qualityspaceremainedexceptionallyscarce:theavailabilityrateforBetterBuildings1withinthecoredroppedtojust8.0%asofQ42025,highlightingtheintensecompetitionforpremium

assets.

PennDistrict/HudsonYardssawthehighestabsorptionofanyMidtowndistrictduringQ4,

totaling1.09millionsq.ft.Thisperformancewasfueledbyrobustleasingandvirtuallynonewsupply.Fourleasesover100,000sq.ft.weresigned,includingRippling’s133,000-sq.-ft.dealat330West34thStreetandRobinhood’s125,000-sq.-ft.commitmentat2PennPlaza.Notably,thedistrictsawnonewavailabilitieslargerthan25,000sq.ft.duringthequarter.Thissharp

contractionpushedtheavailabilityratedown300bpsto7.6%,makingPennDistrict/HudsonYardsthetightestdistrictinManhattan.

GrandCentralposted575,000sq.ft.ofabsorptioninQ4,drivenlargelybythewithdrawalofsubleasespace.Twomajorsubleaseblockswerebackfilledbytheoriginaltenants:Visiting

FIGURE5:QuarterlyNetAbsorption|ByDistrict

ThousandSF

1,200.0

1,000.0800.0600.0400.0200.0 0.0-200.0

pai'

Source:CBREResearch,Q42025.

FIGURE6:SubleaseandDirectAvailabilityRate|Historical

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

2.3%

11.1%

2016201720182019202020212022202320242025

DirectSublease

Source:CBREResearch,Q42025.

FIGURES|MIDTOWNMANHATTAN|Q42025

5CBRERESEARCH?2026CBRE,INC.

NurseServiceofNewYorktookback169,000sq.ft.at220East42ndStreet,whileMcCann-

EricksonAdvertisingwillreoccupy116,000sq.ft.at622ThirdAvenue.Thisactivitypushed

year-endabsorptionto2.23millionsq.ft.andcontributedtoasharpdropinavailability,to

13.6%—down130bpsfromQ3and450bpsyear-over-year.Supportedbypremiercommuter

accessandstrongtenantdemand,GrandCentralranksamongMidtown’smostactivedistricts.

SixthAvenue/RockefellerwastheonlyMidtowndistricttopostnegativeabsorptioninQ4,withavailabilityincreasingby20,000sq.ft.Despitehealthyleasingactivity,threelargespace

additions—eachover100,000sq.ft.—introducedover400,000sq.ft.ofnewsupply.Asaresult,theavailabilityrateheldsteadyat11.3%,thoughitremains290bpsloweryear-over-year.

AverageAskingRent

Midtown’saverageaskingrentreached$84.24persq.ft.inQ42025,up1%fromlastquarter

and3%year-over-year.Whileoverallgrowthappearedmodest,strongleasingactivitypulled

high-endproductoffthemarket,leavingalargevolumeofcommodityspacethatmasksrent

gainsinpremiumsegments.BetterBuildings1withinMidtown’scoretelladifferentstory:askingrentsclimbedto$119.02persq.ft.,up14%fromtheirpost-pandemictroughof$104.08inQ4

2021,amidsustaineddemandfortop-tierassets.

SixthAvenue/RockefellerpostedthestrongestrentgrowthinQ4,withaskingrentsrising5%quarter-over-quarter.Thisincreasewasdrivenbynewsupplyenteringthemarketwith

premiumpricing,includingfourspacesover25,000sq.ft.listedwithtriple-digitrents.Asaresult,thedistrict’saverageaskingrentclimbedto$89.21persq.ft.,up8%year-over-year.

TimesSquareSouthandGrandCentraleachposteda4%increaseinaskingrentsduringQ4,drivenbytheremovaloflow-pricedspacefromthemarket.TimesSquareSouthbenefitedfromthewithdrawalofa116,000sq.ft.blockat500SeventhAvenue,whichhadbeenpricedwell

belowthedistrictaverage.Similarly,GrandCentralsawtwolow-pricedsubleasestotaling

285,000sq.ft.comeofflineastenantsreclaimedthespace.Byyear-end,TimesSquareSouth’saverageaskingrentreached$60.94persq.ft.,whileGrandCentralclosedat$75.27persq.ft.

ParkAvenue,Fifth/MadisonAvenueandTimesSquare/WestSiderecordedmodestrent

FIGURE7:SubleaseSpaceasa%ofAvailableSpace|Historical

26%

24%

22%

20%

18%

16%

14%

12%

10%

17.5%

2016201720182019202020212022202320242025

Source:CBREResearch,Q42025.

25%

20%

15%

10%

5%

FIGURE8:AvailabilityRate|ByDistrict

0%

"w",w"pai'

Source:CBREResearch,Q42025.Q42024Q42025Midtown

FIGURES|MIDTOWNMANHATTAN|Q42025

6CBRERESEARCH?2026CBRE,INC.

movementof2.0%orless,whileEastSide,PlazaandPennDistrict/HudsonYardsremainedstablecomparedtoQ32025.

TakingRentIndex

Thetakingrentindexincreased70bpsquarter-over-quarterto96.3%andwasup290bpsyear-over-year.Thecurrenttakingrentindexhaseclipsedtheyear-end2019levelwhentheindex

was95.3%.Thatsaid,concessionpackagesfornewleasesofrawspacehaveremainedatthe

near-recordlevelsoverthepastseveralyears.Packagesaveraged$156.15persq.ft.intenant

improvementallowance(TI)and17monthsoffreerentin2025.Since2019,averageTIpackageshaveincreased48%andaveragefreerenthasincreased20%.

PerSq.Ft.

$140

$120

$100

$80

$60

$40

$20

FIGURE9:AverageAskingRent|ByDistrict

$0

Q42024Q42025Midtown

Source:CBREResearch,Q42025.

FIGURE10:AverageAskingRent|Historical

PerSq.Ft.

$90

$80

$70

$60

$50

$40

$84.24

$63.08

2016201720182019202020212022202320242025

OverallSublease

Source:CBREResearch,Q42025.

PerSq.Ft.

$215

$195

$175

$155

$135

$115

$95

FIGURE11:ConcessionValues|RentAbatementandT.I.Allowance

$75

Months

2025DealsAverage

*Thisstudyexaminesalldirectnewleaseslargerthan25,000sq.ft.withatermlengthgreaterthan10years.(omitsrenewalsandexpansions).Source:CBREResearch,Q42025.

FIGURES|MIDTOWNMANHATTAN|Q42025

7CBRERESEARCH?2026CBRE,INC.

DevelopmentPipeline

TheMidtowndevelopmentpipelinefeaturestwosignificantofficeconstructionprojectsslatedforcompletioninthenext12months:520FifthAvenueand665FifthAvenue.Collectively,theseprojectswilldeliverapproximately340,000sq.ft.ofnewspacetoinventory,withapre-

committedrateof48%.

ThefirstprojectisRabinaProperties’mixed-usesupertalldevelopmentat520FifthAvenue,offeringbothresidentialunitsand211,000sq.ft.ofofficespace.Thesecond,Rolex’snew

headquartersat665FifthAvenue,willencompass126,000sq.ft.ofofficespace.

Theplannedpipelinehasalsoseenprojectscometotheforefrontasfirstmovers.Related’s70HudsonYardsisawaitinggroundbreakingwithitscommitmentfromDeloittetoanchorthe

project.Additionally,BostonPropertiesnowhasananchortenantfor343MadisonAvenueandisexpectedtogoverticalinQ32026.Astheseprojectsbeginfoundationwork,theywillbe

addedtotheactiveconstructionpipeline.

SeveralotherplanneddevelopmentsitesintheMidtowncoreincludeRelated’sproposed

constructionof625MadsonAvenue(833,000sq.ft.),RXR’s175ParkAvenue(2.10millionsq.

ft.),VornadoRealtyTrustandRudinManagement’sjointventureat350ParkAvenue(1.80millionsq.ft.),Extell’s570FifthAvenue(1.50millionsq.ft.)andRudinManagement’s415MadisonAvenue(343,000sq.ft.).

Incontrast,severalprojectsareunderwaytoconvertobsoleteofficespacetoalternativeuses,signalingastructuralshiftinMidtown’sinventory.Currently,tenactiveconversionswillremove

3.31millionsq.ft.fromtheofficemarket.Inaddition,17plannedorannouncedprojectstotaling

6.40millionsq.ft.areinthepipeline,alongwithtenrumoredconversionsthatcouldtakeanother4.92millionsq.ft.offline.Ifrealized,theseinitiativeswouldsignificantlyreducetheofficesupplyandreshapemarketdynamics.

FIGURE12:ConcessionValues|Historical*

FreeRent

18

16

14

12

10

8

6

4

2

0

17

$156.15

2016201720182019202020212022202320242025

$175

$150

$125

$100

$75

$50

$25

$0

TenantImprovementAllowance

FreeRent——T.I.

*Thisstudyexaminesalldirectnewleaseslargerthan25,000sq.ft.withatermlengthgreaterthan10years.(omitsrenewalsandexpansions).

Source:CBREResearch,Q42025.

FIGURE13:TakingRentIndex|Historical

100%

95%

90%

85%

80%

75%

Q12021

Q22021

Q32021

Q42021

Q12022

Q22022

Q32022

Q42022

Q12023

Q22023

Q32023

Q42023

Q12024

Q22024

Q32024

Q42024

Q12025

Q22025

Q32025

Q42025

96.3%

Source:CBREResearch,Q42025.

FIGURES|MIDTOWNMANHATTAN|Q42025

MarketAreaOverview

Definitions

Availability:Spacethatisbeingactivelymarketedandisavailablefortenantbuild-outwithin12months.Includesspaceavailableforsubleaseaswellasspaceinbuildingsunderconstruction.

AskingRent:Weightedaverageaskingrent.

ConcessionValues:ThecombinationofrentabatementandT.I.allowance.Includesnewleasesforrawspace,25,000sq.ft.orgreaterandconsummatedyear-to-date.Thisexcludesexpansionandrenewaldeals.

LeasingActivity:Totalamountofsq.ft.leasedwithinaspecifiedperiodoftime,includingnewdeals,expansions,andpre-leasing,butexcludingrenewals.

LeasingVelocity:Totalamountofsq.ft.leasedwithinaspecifiedperiodoftime,includingnewdeals,expansions,pre-leasingandrenewals.

NetAbsorption:Thechangeintheamountofcommittedsq.ft.withinaspecifiedperiodoftime,asmeasuredbythechangeinavailablesq.ft.

RentAbatement:Thetimebetweenleasecommencementandrentcommencement.

TakingRent:Actual,initialbaserentinaleaseagreement.

TakingRentIndex:Initialtakingrentsasapercentageofaskingrents.

Definitions

T.I.:Tenantimprovements.

Vacancy:Unoccupiedspaceavailableforlease.

PercentageofLeasingbyIndustry:Thepercentageofsq.ft.leasedbyanindustrybasedontransactionswhereatenantandindustryhavebeenconfirmed.

SurveyCriteria

CBRE’smarketreportanalyzesfullymodernizedofficebuildingsthattotal150,000+sq.ft.inMidtown,includingowner-occupiedbuildings(exceptthoseownedandoccupiedbyagovernmentorgovernmentagency).Newconstructionmustbeavailablefortenantbuild